KUALA LUMPUR: Shares of MSM Holdings Bhd surged to a high of RM4.64 early Thursday after it was upgraded by analysts following a hike in sugar prices.
At 10am, shares of the sugar refiner and distributor was up eight sen to RM4.51. There were 18,200 shares traded at prices between RM4.50 and RM4.64.
The FBM KLCI rallied 12.67 points or 0.75% to 1,710.36. Turnover was 809.08 million shares valued at RM370.29mil. There were 413 gainers, 152 losers and 335 counters unchanged.
A news report stated the retail price for sugar in the country has been raised from RM2.84 a kg to RM2.95.
CIMB Equities Research upgraded MSM to Hold from Reduce with a higher target price of RM4.43.
“We raise our target price which is based on 15.5 times forward price-to-earnings (P/E) to RM4.33 to reflect the higher earnings estimates,” it said.
CIMB Research was more positive on MSM following the sugar price revision. This, coupled with improving earnings prospects due to a series of average sale price adjustments for sugar, led it to raise its rating to a Hold from Reduce.