MISC sees volatile trading as sentiment cautious

KUALA LUMPUR: MISC Bhd
saw volatile trading on Wednesday, with the share price swinging
between RM4.53 and RM4.62 as sentiment was cautious after Petroliam
Nasional (Petronas) failed in its takeover bid.
At 9.51am, MISC was unchanged at RM4.54. There were 864,300 shares done at prices ranging from RM4.53 to RM4.62.
The
FBM KLCI rose 2.33 points to 1,702.72. Turnover was 92.66 million
shares valued at RM100mil. There were 162 gainers, 97 losers and 173
counters unchanged.
As at last Friday, Petronas secured
acceptances which took its stake in MISC to 86%, short of the 90%
required to make the RM5.50 a share general offer unconditional.
CIMB Research
said many event-driven and short-term funds had recently taken
positions in MISC to play the general offer (GO). It also did not expect
these shareholders to hold on to their stakes.
It also ointed out Petronas would not be able to make another offer for one year. It added it was neutral on shipping overall.
"Prior
to the GO, our target price for MISC was RM4.32, which is at a 30%
discount to its SOP of RM6.17 to factor in the lack of catalysts to the
stock and the depressed tanker cycle.
"As the GO has failed, we
will likely reduce our current target price of RM5.30 back to about
RM4.32. However, investors should look for a possible aggressive selloff
that exposes deep value," it said.