KUALA LUMPUR: Shares of DRB-Hicom and its call warrants surged in early Monday trade on fresh news flow that it could be looking to sell its entire stake in loss-making Proton.
At 9.07am, DRB-Hicom was up six sen to RM1.17. There were 2.16 million shares traded at prices ranging from RM1.16 to RM1.19.
Its call warrants C20 rose three sen to 10 sen with 15.5 million units done while C19 added 3.5 sen to 20.5 sen. Also up 3.5 sen was C21 to 17 sen.
The FBM KLCI rose 3.30 points or 0.2% to 1,667.34. Turnover was 134.97 million shares valued at RM48.04mil. There were 157 gainers, 71 losers and 154 counters unchanged.
CIMB Equities Reseach is retaining its earnings forecast for DRB-Hicom and target price of RM1.60, which is a 10% discount to the realised net asset value (RNAV).
It said on Monday that a successful disposal of Proton at a good price would act as a catalyst for the share price.
It was commenting on a news weekly report that DRB-Hicom Bhd is expecting as many as seven bids for Proton by the middle of this month and it may even sell as much as 100% of Proton to foreign buyers.
Based on industry sources, DRB-Hicom advised key stakeholders of the possibility that Proton will be wholly disposed of.
The whole process is expected to be completed by the 1Q of next year. The sources added that DRB-Hicom made it clear that it was willing to sell up to 100% of Proton.
At 9.07am, DRB-Hicom was up six sen to RM1.17. There were 2.16 million shares traded at prices ranging from RM1.16 to RM1.19.
Its call warrants C20 rose three sen to 10 sen with 15.5 million units done while C19 added 3.5 sen to 20.5 sen. Also up 3.5 sen was C21 to 17 sen.
The FBM KLCI rose 3.30 points or 0.2% to 1,667.34. Turnover was 134.97 million shares valued at RM48.04mil. There were 157 gainers, 71 losers and 154 counters unchanged.
CIMB Equities Reseach is retaining its earnings forecast for DRB-Hicom and target price of RM1.60, which is a 10% discount to the realised net asset value (RNAV).
It said on Monday that a successful disposal of Proton at a good price would act as a catalyst for the share price.
It was commenting on a news weekly report that DRB-Hicom Bhd is expecting as many as seven bids for Proton by the middle of this month and it may even sell as much as 100% of Proton to foreign buyers.
Based on industry sources, DRB-Hicom advised key stakeholders of the possibility that Proton will be wholly disposed of.
The whole process is expected to be completed by the 1Q of next year. The sources added that DRB-Hicom made it clear that it was willing to sell up to 100% of Proton.
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