Hot Stock MISC shares bounce back after plunging 13.1%

by **Cals** Wed 11 May 2016, 13:21

Hot Stock

[size=28]MISC shares bounce back after plunging 13.1%

By Supriya Surendran / theedgemarkets.com | May 10, 2016 : 11:51 AM MYT

KUALA LUMPUR (May 10): Shares of MISC Bhd were up as much as 42 sen (5.8%) to RM7.67 this morning, after plunging from RM8.34 last Friday to RM7.25 yesterday (May 9), signifying a 13.1% drop in a span of two market days.

The sudden plunge in its share price had also prompted Bursa Malaysia to issue an unusual market activity (UMA) query on the counter today.

However, the bounce back in the company’s share price this morning could be attributed to news that the company expects to see proceeds of up to RM358 million from the disposal of its entire equity stake in MISC Integrated Logistics Sdn Bhd (MILS) and the settlement of shareholder's loan and other receivables due by MILS.

MISC told the exchange yesterday that it will dispose MILS to Swift Haulage Sdn Bhd, and that the purchaser will also assume the liability of MILS.

AllianceDBS Research in a note this morning said it is neutral on the disposal, due to the transaction’s relatively small size.

“[However], the proceeds will marginally contribute towards expected capex requirements of more than RM3.2 billion in financial year ending Dec 31, 2016 (FY16) — largely due to the US$445 million(RM1.8 billion) acquisition of the remaining 50% stake in Gumusut-Kakap Semi-Floating Production System,” the firm said.

At 11.16 a.m., MISC shares were trading up 41 sen (5.6%) to RM7.66, with a trading volume of 8.81 million shares, having a market capitalisation of RM32.5 billion.

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