TM International Bhd climbed the most in a month after the government announced an additional RM3 billion spending (US$814 million) for investment in the industry.
The shares rose 3.9 per cent to RM2.65 at 11.47am on the Malaysian stock exchange, set for their biggest gain since Feb 13. The stock jumped as much as 5.5 per cent earlier.
Khazanah Nasional Bhd, the biggest shareholder of TM International, will invest the additional spending for the telecommunications sector this year, Finance Minister Datuk Seri Najib Razak announced yesterday as part of the country’s RM60 billion second stimulus package to prevent a recession.
Kuala Lumpur-based TM International would be one of the companies that will benefit from the new package, analysts Clare Chin and Chee Wei Loong at CLSA Asia-Pacific Markets wrote in a report today. The brokerage has a “sell” recommendation on the stock.
Khazanah, Malaysia’s state- owned investment company which owns 45 per cent of TM International, will take up its rights offer portion and subscribe to as much as 20 per cent more, the company has said.
Najib said yesterday the RM3 billion allocation will also be spent on a national broadband project. Telekom Malaysia Bhd, the state-controlled fixed-phone operator, is leading the project that may cost RM11.3 billion over 10 years. The stock was unchanged at RM3.5. - Bloomberg
No comments:
Post a Comment