KUALA LUMPUR: Shares in Axiata Group Bhd
and Telekom Malaysia Bhd (TM) rose higher on news of a potential merger between the two telecommunication giants.
Axiata’s shares gained 8 sen to at RM5.05 while TM rose three sen to RM6.35 at noon.
StarBiz reported that a merger between TM and Axiata is on the cards, sources say, as a means to strengthen the former in an increasingly converged market.
Sources say that both companies have already hired advisors, with CIMB Investment Bank advising TM while Goldman Sachs is working for Axiata on the deal.
Meanwhile, share prices on Bursa Malaysia ended firmer at midday, led by buying support for selected heavyweights such as Maybank, Axiata and Genting Malaysia.
The FBM KLCI rose 3.30 points to 1,748.50 at noon. The benchmark index opened 1.13 points lower at 1,744.07.
Market breadth was positive with 522 gainers, 378 decliners and 466 counters unchanged. Turnover was at 3.63 billion shares valued at RM1.52bil.
US stocks closed mixed Friday, dragged down by declines in financial and health care stocks while the European markets closed slightly higher on Friday after hitting record highs during the previous session.
JF Apex expects the local bourse to take a breather and hover between 1,700-1,750 levels.
Leading the top gainers on Bursa Malaysia, KESM rose 54 sen to RM11.54, Nestle gained 46 sen to RM77.28 and MPI increased 26 sen to RM10.42.
Riverview Rubber Estates and Petronas Dagangan ended the day among the top losers, declining 22 sen each to RM3.88 and RM23.62 respectively.
Reuters reported that oil prices fell on Monday as rising U.S. drilling activity and steady supplies from OPEC countries despite touted production cuts pressured already-bloated markets.
Brent crude was last traded at US$51.37 per barrel while US crude traded at US$48.29 per barrel.
Elsewhere in the region, Asian shares were a higher with Japan’s Nikkei Stock Average fell 0.35%, Australia’s S&P/ASX 200 eased 0.36%, Korea’s Kospi fell 0.47%, and the Hang Seng Index in Hong Kong was up 0.49%.
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