Kuala Lumpur: Malaysia’s top shipping line has seen its share price tumble further today, down 1.32% to RM4.48 at 1pm. It follows a horrendous couple of days for MISC on the local stock exchange as its share price has dropped dramatically following last Friday’s announcement that parent Petronas had pulled out of its RM9.16bn buyout offer. Shareholders were offered RM5.50 per share after Petronas repeatedly upped its bid.
Investors should use yesterday’s drop to accumulate as prospects for MISC “remain bright,” Ahmad Maghfur Usman, an analyst at RHB Capital Bhd, wrote in a report this week. The shipping group could benefit from its parent’s expansion in Australia and Canada and could list its LNG shipping division to raise capital to acquire more vessels, he said.
“Such a move will crystalise the valuations of the shipping conglomerate,” said Ahmad Maghfur, who upgraded the stock to ‘Buy’ from ‘Neutral’ with a price target of RM5.88. “Petronas won’t be making a new offer for six months at least. Beyond that, however, we do not discount the possibility.” [24/04/13]
