KUALA LUMPUR: Oil and gas service provider Bumi Armada Bhd rose 5% to RM4.02 yesterday, following news that it will be added to the MSCI Equity Index.
In a statement following its semi-annual index review on Tuesday, MSCI Inc said Bumi Armada’s addition, effective Nov 30’s close, is not at the expense of existing constituents as there will be no deletions.
Finishing seventh on yesterday’s top gainers list, Bumi Armada closed at RM3.99, rising 16 sen or 4.18% for the day with over 16.12 million shares done. With a current market capitalisation of RM11.7 billion, it is among Malaysia’s largest stocks by market capitalisation.
Just four months ago, on July 21, Bumi Armada made a strong debut in a volatile market, selling 878.5 million shares at RM3.03 apiece to raise RM2.66 billion.
Its IPO was one of the largest this year, alongside MSM Malaysia Holdings Bhd and UOA Development Bhd.
The stock was highest at RM4.33 on July 22.
Seven brokerage houses are calling the stock a “buy” against six with “hold” and none saying “sell”, according to Bloomberg data. At the time of writing, price targets ranged from OCBC Investment Research’s RM3.36 to HwangDBS Vickers’ RM5 apiece.
This article appeared in The Edge Financial Daily, November 17, 2011.
In a statement following its semi-annual index review on Tuesday, MSCI Inc said Bumi Armada’s addition, effective Nov 30’s close, is not at the expense of existing constituents as there will be no deletions.
Finishing seventh on yesterday’s top gainers list, Bumi Armada closed at RM3.99, rising 16 sen or 4.18% for the day with over 16.12 million shares done. With a current market capitalisation of RM11.7 billion, it is among Malaysia’s largest stocks by market capitalisation.
Just four months ago, on July 21, Bumi Armada made a strong debut in a volatile market, selling 878.5 million shares at RM3.03 apiece to raise RM2.66 billion.
Its IPO was one of the largest this year, alongside MSM Malaysia Holdings Bhd and UOA Development Bhd.
The stock was highest at RM4.33 on July 22.
Seven brokerage houses are calling the stock a “buy” against six with “hold” and none saying “sell”, according to Bloomberg data. At the time of writing, price targets ranged from OCBC Investment Research’s RM3.36 to HwangDBS Vickers’ RM5 apiece.
This article appeared in The Edge Financial Daily, November 17, 2011.
