The house adds, the stock “looks poised to attempt the upside again following the recent correction.” It tips resistance at $2.40, and then $2.50, with support at $2.10, and then $2.00.
“With forward yields of at least 5.2% and rising, CMT could be an alternative inflation hedge,” the house says. It adds, like CapitaCommercial Trust (C61U.SG), CMT has a high cash position of US$712 million ($916.8 million).
Kim Eng Research in a Jan 18 research report says: “SIA’s December passenger load factors dipped 3.6 percentage points y-o-y but still remained healthy at 80.7. Cargo continued to outperform expectations, with load factor holding steady at 63.5.
“The trust structure is reportedly planning to raise a massive US$6 billion ($7.7 billion), making it the biggest IPO in Singapore ever…the issue will breathe new life into SGX-listed business trusts in general, particularly infrastructure trusts.” Says K-Green Trust (LH4U.SG) and Macquarie International Infrastructure Fund (M41.SG) relative laggards, trading at or below book values, despite attractive yields of between 5.1%-7.4%.
Shares of Kim Eng jumped 13% to $3.05 at the 5 p.m. close in Singapore trading, an all-time high, making it the best performer on Singapore’s stock exchange. Maybank, as the Kuala Lumpur-based company is known, slipped 0.1% to 9 ringgit, snapping a three-day gain.
Maybank (MBBM.KL), Malaysia’s largest lender by assets, is snapping up Kim Eng for $1.4 billion in a move to strengthen its grip on the regional stock broking industry and diversify the lender’s source of overseas revenue.
Shares of Kim Eng jumped 12% to $3.03 at 10:48 a.m. in Singapore trading, set to close at an all-time high. Maybank, as the Kuala Lumpur-based company is known, added 0.7% to 9.07 ringgit, headed for its highest close since Nov. 16.
Shares of Singapore’s Kim Eng Holdings (KEHS.SI) opened 13% higher on Friday after Malaysia’s largest lender Maybank (MBBM.KL) offered to buy the stockbroker for US$1.4 billion ($1.8 billion).
Around 9:02 a.m., Kim Eng shares were traded at $3.05, below Maybank’s offer price of $3.10 a share but well above its last traded price of $2.70.
Maybank said on Thursday that it has already agreed to buy a 44.6% stake in Kim Eng from two major shareholders.
Malayan Banking Bhd., Malaysia’s biggest lender by assets, offered to buy Singaporean brokerage Kim Eng Holdings Ltd. in a deal valued at $1.79 billion, accelerating its expansion in Southeast Asia.
Maybank, as the Kuala Lumpur-based company is known, agreed to buy a 44.6% stake in Kim Eng from Taiwan’s Yuanta Securities Asia Financial Services and Kim Eng Chairman Ronald Anthony Ooi Thean Yat at $3.10 a share, the companies said in separate statements today. That’s a 36% premium to the stock’s average price over the past 20 days.
The plan may include selling Singapore dollar debt as Kim Eng is a Singapore entity, he said.
Kim Eng Research in a Jan 3 research report says: “Boustead has been quietly delivering, reporting record profits year after year from FY Mar03 to FY Mar09, with sustained double-digit growth rate. Multiple growth opportunities exist for Boustead’s varied businesses.
Maybank, as the Kuala Lumpur-based company is known, agreed to buy a 44.6% stake in Kim Eng from Taiwan’s Yuanta Securities Asia Financial Services and Kim Eng Chairman Ronald Anthony Ooi Thean Yat at $3.10 a share, the companies said in separate statements today. That’s a 36% premium to the stock’s average price over the past 20 days.
Maybank, as the Kuala Lumpur-based company is known, agreed to buy a 44.6% stake in Kim Eng from Yuanta Securities Asia Financial Services and Kim Eng Chairman Ronald Anthony Ooi Thean Yat at $3.10 a share, the companies said in separate statements today. That’s 15% above Kim Eng’s latest price.
Malaysia’s Maybank (MBBM.KL) is to acquire a stake in Singaporean stock broker Kim Eng (KEHS.SI) from a Taiwanese investor, a source with direct knowledge of the deal told Reuters on Thursday.
Taiwan’s Yuanta Financial Holdings (2885.TW) owns about 28% of Kim Eng.
Shares in Maybank and Kim Eng were suspended from trade on Thursday.
A Maybank official said the company would hold a press conference later in the day but declined to elaborate.
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Malayan Banking Bhd., Malaysia’s biggest lender by assets, is planning a 4.2 billion ringgit ($1.8 billion) general offer for Kim Eng Holdings, a Singapore securities broker, said a person familiar with the matter who couldn’t identified as the information was confidential.
Both Malayan Banking, or Maybank, and Kim Eng’s shares were suspended today pending an announcement. Kim Eng said in a Singapore exchange filing on Dec. 17 that it had been approached by unidentified parties that may be interested in buying its shares that may lead to a general offer.
Celina May Benjamin, a Maybank spokeswoman, was not immediately available for comment when phoned by Bloomberg.
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Singapore stock broker Kim Eng Securities (KEHS.SI) has requested for a trading halt on its shares, it said on Thursday. Kim Eng said in December it had been approached by “potential interested parties” for a stake purchase in the firm, but did not name the potential buyers.
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Weekend Comment Jan 7: Jurong Point plays
GUTHRIE GTS and Lee Kim Tah Holdings are two retail mall plays which are trading below their net asset values. At 50 cents, Guthrie is trading below its NAV of 66 cents, at a price-to-book ratio of 0.75 times. Lee Kim Tah’s book value is 62.7 cents, and it is trading at a price-to-book of 0.9 times. The two companies own a 50% stake each in Jurong Point I, and a 25% stake each in Jurong Point II.
In a research note on Jan 7, Kim Eng Research raises the possibility of Guthrie GTS unlocking value of Jurong Point via a REIT. Following the completion of Jurong Point II, Jurong Point I and II together is Singapore’s largest suburban mall with a nett lettable space of about 750,000 sq ft, housing 450 shop units and adjacent to Boon Lay MRT station and a bus interchange.
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