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Malaysia Hot Stocks – Maybank dips on rights pricing; TMI down

Posted on: March 6, 2009


Reuters – Friday, March 6

KUALA LUMPUR, March 6 – Malaysia’s benchmark stock index <.KLSE> was 0.9 percent lower at 861.49 points by 0333 GMT.

Stocks on the move on Friday include:

**MAYBANK SLIPS ON RIGHTS PRICING

Shares of Malaysia’s largest lender Maybank <MBBM.KL> fell as much as 1.66 percent on Friday after the bank announced the issue price for its planned 6 billion ringgit rights offering.

Maybank shares were 1.66 percent lower at 4.74 ringgit a share by 0333 GMT.

Maybank said late Thursday it will issue the rights shares at 2.74 ringgit a share. The issue price marked a 43 percent discount to its closing price of 4.82 ringgit on Thursday.

Deutsche Bank said it is keeping its sell rating on Maybank.

“We believe that sentiment should remain weak on the back of a highly dilutive rights issue and risks of further asset impairments and a lower dividend payout,” said the brokerage in a note to clients on Friday.

**TM INTERNATIONAL DOWN AS MARKET AWAITS RIGHTS DETAILS

Malaysian mobile phone company TM International <TMIT.KL> fell 3.04 percent to 2.55 ringgit by 0333 GMT on Friday as the market awaits the details of a planned rights offering.

Based on its closing price on Thursday, TM International has dropped 12.9 percent over the past one week, underperforming the wider market’s <.KLSE> loss of 2.41 percent.

The stock has suffered heavy selling pressure since its announcement last week that it would tap shareholders’ money to raise 5.25 billion ringgit to reduce debts.

TM International is expected to announce in the March 16 week the basis for the rights offering and the issue price for the rights shares, a dealer from a local brokerage said.

The company does not expect further cash calls, TM International Chief Financial Officer Yusof Annuar Yaacob was quoted by the Star newspaper as saying.[ID:nKLR483367]

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