Near-term price action for Digi, Sime Plantation, Sime Property

Digi is back in the Securities Commission

KUALA LUMPUR: Digi.Com Bhd, Sime Darby Plantation and Sime Darby Property have been included into the Securities Commission’s (SC) Shariah compliant list with effect from Friday.

Maybank Investment Bank Research said it had a Hold call on the three stocks which are in its portfolio. 

“Nevertheless, their admission could potentially spur positive price action in the near term,” it said.

The SC’s list includes 17 additions and seven deletions, as opposed to 33 additions, 22 deletions in the November 2017 review. 

Maybank Research said the number of Shariah compliant stocks now stands at 693 (77% of the total of 901 listed stocks, including REITS, on Bursa Securities). This contrasts against 686 compliant stocks in the November 2017 Shariah list. 

The research house's target price for Digi is RM4.80, Sime Darby Plantation (TP RM5.63) and Sime Darby Property (TP RM1.57).

To recap, Digi was removed from the Shariah list in November 2017, because it failed to comply with the conventional debt/total assets ratio of 33%. 

Sime Darby Plantation and Sime Darby Property are new listings, which arose from the carving out of Sime Darby’s core businesses.