EPF sells 5m DRB-Hicom shares

CIMB Equities Research has upgraded DRB-Hicom from Hold to Add with a higher target price of RM1.60

KUALA LUMPUR: The Employees Provident Fund Board disposed of five million shares of DRB-Hicom on  Aug 2 when the share price was on an upward trend.

A filing with Bursa Malaysia, showed after the sale of the 0.25% stake, the EPF's shareholding was reduced to 113.15 million shares or 5.85%.

Shares of the diversified group has surged over the recent week on strong newsflow and corporate news. 

CIMB Equities Research 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.