KUALA LUMPUR (Jan 12): Shares of RHB CAPITAL BHD [] and OSK HOLDINGS BHD [] advanced in early trade n Thursday after they jointly announced that they had submitted their applications for the proposed merger of businesses between OSK investment banking group and RHB banking group to Bank Negara Malaysia and the Minister of Finance.
At 9.05am, RHB Capital added four sen to RM7.31 with 23,700 shares traded while OSK gained two sen to RM1.86 with 1.68 million shares done.
Alliance Research vice president for equity research Cheah King Yoong upgraded his recommendation on RHB Capital from Neutral to Trading Buy, and upped the target price for the stock.
“With the impending proposed merger exercise drawing closer, we have removed our 10% discount from our valuation and raised our target price to RM8.70.
“Should the actual merger details to be announced prove to be more favourable to RHBC’s shareholders, than what has been speculated by the market, it could serve as a near term re-rating catalyst for RHB Capital,” he said in a note Thursday.
At 9.05am, RHB Capital added four sen to RM7.31 with 23,700 shares traded while OSK gained two sen to RM1.86 with 1.68 million shares done.
Alliance Research vice president for equity research Cheah King Yoong upgraded his recommendation on RHB Capital from Neutral to Trading Buy, and upped the target price for the stock.
“With the impending proposed merger exercise drawing closer, we have removed our 10% discount from our valuation and raised our target price to RM8.70.
“Should the actual merger details to be announced prove to be more favourable to RHBC’s shareholders, than what has been speculated by the market, it could serve as a near term re-rating catalyst for RHB Capital,” he said in a note Thursday.
