Hot Stock Hwang-DBS jumps 19% on special dividend

by **Cals** Thu 10 Apr 2014, 01:18

Hot Stock Hwang-DBS jumps 19% on special dividend

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 09 April 2014 11:03

KUALA LUMPUR (Apr 9): Hwang-DBS (M) Bhd rose as much as 19% after the group announced a special dividend of RM2.50 a share. Hwang-DBS plans to pay the special dividend in the form of a single-tier interim payout

At 10.21am, Hwang-DBS was traded at RM4.47, up 42 sen or 10% with some 2.9 million shares done. Earlier, the stock which was among the bourse' top gainers, rose as much as 75 sen to RM4.80.

The stock changed hands at RM4.46 at 10.50am.

A remisier said “announcement of dividend payments will usually drive up the share price of a company."

“I would say that Hwang-DBS is cash-rich now since they have disposed some of their assets,” he told theedgemalaysia.com over telephone.

In an announcement last Monday (April 7), Hwang-DBS said it had completed the disposal of its 100% stake in HwangDBS Investment Bank Bhd to Affin Holdings Bhd for RM1.3 bllion cash.

Earlier, Hwang-DBS said it was also selling its 51% stake in HwangDBS Vickers Research Sdn Bhd to Alliance Investment Bank Bhd.

On the Hwang-DBS-Affin transaction, RHB Research Institute Sdn Bhd analyst David Chong wrote in a note today that Affin had indicated that the acqusition of HwangDBS Investment was a "good fit".

This took into account HwangDBS Investment's expertise in retail and asset management which complements Affin's bank-backed balance sheet, and strength in the government-linked companies' segment.