The Star Online: Business
The Star Online: Business |
| Pelikan advances on CSL share swap Posted: 22 Oct 2012 06:23 PM PDT KUALA LUMPUR: Shares of Pelikan International Corp Bhd advanced in early trade as investors were positive to the proposed share swap agreement with China Stationery Ltd (CSL). At 9.10am, Pelikan was up 2.5 sen to 76.5 sen. There were 114,000 shares done. CSL was flat at RM1.06. The FBM KLCI fell 3.53 points to 1,658.42. Turnover was 56.03 million shares valued at RM27.02mil. There were 87 gainers, 64 losers and 118 counters unchanged. On Monday, CSL proposed to buy a 9.79% stake in Pelikan for RM50mil via a share swap, which would enable both companies to collaborate to grow the business. CIMB Equities Research described the proposal by some Pelikan's shareholders to swap their share with CSL as a positive surprise. "Pelikan should benefit from CSL's strong distribution network in China and elsewhere in Asia," it said. However, CIMB Research said this development would however still not be enough to offset declining Europe revenues. |
| Posted: 22 Oct 2012 06:18 PM PDT PETALING JAYA: Astro Malaysia Holdings Bhd's share price fell due to the overall weak market sentiment and the perception that the shares might have been overvalued. However, analysts said the freed supply of shares could also open doors to investors who failed to hop on the initial public offering (IPO) bandwagon. Affin Investment Bank Bhd, in a recent report, had valued the shares at RM3.12. Astro shed 23 sen to RM2.77 or 7.7% lower on volume of over 120 million shares traded. The shares fell to an intra-day low of RM2.73. An Affin Research analyst said Astro was a stock with potential although the upside might not be that interesting. "It is a stock investors should own, provided the valuations are reasonable. Currently, it is still rich compared with its peers," he said, reiterating a consensus opinion among analysts. "However, the current dividend yield is not that exciting and though the yield, at 2% , should jump to 3% in one or two years, it may not be exciting enough" he added. Affin valued Astro's dividend yield for the financial year 2015 to be 3.1%, from the current 2.3% calculated based on the RM3 IPO price. Some market watchers added that Astro's sell-down could have been driven by cornerstone investors dumping shares as they were not subjected to any lock-up period. Aberdeen Asset Management Sdn Bhd managing director Gerald Ambrose said the rules for the major pay-TV operator's listing had been somewhat "perverted", allowing cornerstone investors to cash out earlier than the usual moratorium period of a few months. "The rules have been tweaked (for this IPO). The cornerstone investors were allowed to dispose of their shares unlike in the IHH Healthcare and Gas Malaysia listings," he said. Ambrose believed the issue of Astro not setting aside shares for retail investors as well as the high price could dampen market interest. "Companies usually leave a bit (of shares) on the table. The fact that it has taken a high price and was oversubscribed could have failed to raise conviction among the investors," Ambrose said. |
| Posted: 22 Oct 2012 06:12 PM PDT KUALA LUMPUR: Blue chips fell in early trade on Tuesday, dragged down by losses in banks and Petronas Chemicals, though in razor-thin trade. At 9am, the FBM KLCI was down 1.15 points to 1,660.80. Turnover was 16.56 million shares valued at RM4.89. There were 44 gainers, 25 losers and 68 counters unchanged. JF Apex Research said market direction will continue to be influenced by US corporate earnings as well as other economic data namely, housing data on Wednesday and third quarter GDP on Friday. Public Bank foreign fell 14 sen to RM14.80 and AmBank nine sen to RM6.30 with 100 shares done. PetDag lost 12 sen to RM22.02, PetChem seven sen to RM6.44 while BAT gave up six sen to RM63.80. Sime was down five sen to RM9.75 and Axiata three sen to RM6.63. However, UMW rebounded, up 14 sen to RM10.12 and Maybank gained six sen to RM9.10. |
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