KUALA LUMPUR: Stock prices for Telekom Malaysia Bhd (TM) jumped Thursday morning following the resignation of its group CEO Datuk Seri Shazalli Ramly.
The group has appointed Datuk Bazlan Osman as acting group CEO succeeding Shazalli with immediate effect.
TM is the second biggest mover on Bursa Malaysia. The counter jumped 8.04%, or 30 sen to RM4.03, its biggest move since last December. Year-to-date, it has fallen some 34%.
CGS-CIMB Research said the current CEO’s resignation came as a surprise, with TM citing personal reasons.
“During Datuk Shazalli’s short 1-year tenure, he introduced the PERFEXE 10 execution model to accelerate TM’s convergence strategy and empower digital, reinforced/used unifi as the convergence brand across its various consumer services, and revamped TM One to offer end-to-end ICT solutions to the various industry verticals,” the research house said.
CIMB said the appointment of Bazlan would ensures continuity given his familiarity with the business and organisation.
Bazlan was the group CFO of TM since 2005, before being appointed as its deputy Group CEO in Apr 2017.
“We gather he has strong internal staff support, built up from his many years at TM,” CIMB said.
“Despite the change in leadership, we understand from TM’s conference call that it will maintain its current business strategy, ie. to be Malaysia's convergence champion and to accelerate the execution of its convergence strategy.
“As such, we believe the day-to-day operations of TM should be unaffected by this latest development,” it added.
CIMB has maintained a “hold” with an unchanged target price of RM4.30 on TM.