KUALA LUMPUR: CIMB share price fell to a low of RM6 on Monday in a knee jerk selldown due to its relatively high foreign shareholding of 27% and misperception of its links.
At 10.30am, CIMB was down 34 sen to RM6.56 with 45.42 million shares done.
The FBM KLCI was weighed down by losses in CIMB. The 30-stock index was down 4.76 points or 0.26% to 1,841.75. Turnover was 2.44 billion shares valued at RM2.31bil.
The broader market was firmer with 623 gainers, 369 losers and 181 counters unchanged.
UOB Kay Hian Malaysia Research said CIMB remained its top pick for the sector as valuations is relatively compelling at 1.20 times 2018 price-to-book value vs sector's 1.55 times despite having a similar return on equity profile with the sector at 10.6%.
“We anticipate a knee jerk sell down on this stock given its relatively high foreign shareholding of 27% and the perception of the stock's links (albeit weak) to (Datuk Seri) Najib Razak which presents an excellent buying opportunity as this perception is misplaced with the major shareholder of CIMB being Khazanah Nasional,” it said.
Already a subscriber? Log in
5.5 PAYDAY OFFER: 35% OFF Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
