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STOCKS NEWS MALAYSIA-MISC rises on oil and gas unit sale

Shares of Malaysia's shipping firm MISC Bhd roseas much as 5.65 percent after the company said it will disposeof a 50 percent stake in its semi-submersible floatingproduction system unit that could raise $1.7 billion cash.

"We are positive on this latest development as this willreinforce MISC's balance sheet," MIDF Research said in a note onMonday.

The strengthening of its balance sheet will facilitateMISC's future investment and weather any continuing losses fromits petroleum and chemical tanker business, it added.

MIDF raised its target price on MISC to 6.01 ringgit pershare from 5.65 ringgit and kept its 'buy' recommendation, inview of the possible credit upgrade from rating agencies andenhanced visibility of earnings.

The counter was up 3.53 percent at 4.40 ringgit per share,outperforming the broader index's 0.11 percent drop.

0324 GMT

(Reporting by Yantoultra Ngui in Kuala Lumpur; Editing byPrateek Chatterjee; yantoultra.ngui@thomsonreuters.com)

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10:30 STOCKS NEWS MALAYSIA-RHB starts Perisai Petroleum withoutperform

RHB Investment Bank started coverage on oil and gas companyPerisai Petroleum Teknologi Bhd with an 'outperform'call on prospects of strong earnings and more domestic ordersfrom state oil company Petronas .

RHB assigned a fair value target of 1.47 ringgit per shareto the company.

With Ezra Holdings as the majority shareholder,Perisai will be able to leverage on the Singapore-listed firm'slarge asset base of specialised and niche vessels to expand itsown assets, RHB said.

"We believe Perisai can internally fund its purchase of thenew jack-up rig. However, beyond that, we expect Perisai toraise capital through equity issuance to fund new assetacquisitions," RHB said in a note to clients.

Although expanding the balance sheet would dilute earnings,RHB expects it would be earnings accretive as the assets wouldlikely provide a step-up in recurring income in future.

Shares in Perisai rose 0.5 percent on Monday, outperformingthe broader market that dropped slightly.

0213 GMT

(Reporting by Niluksi Koswanage in Kuala Lumpur;niki.koswanage@thomsonreuters.com; Editing by PrateekChatterjee)

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STOCKS NEWS MALAYSIA-Maybank falls on $1.2 bln share offer

Shares of Malayan Banking Bhd (Maybank) dropped asmuch as 0.67 percent after the largest bank by assets inMalaysia said it would raise $1.2 billion with a new share offerto fund growth in the country and its regional subsidiaries.

"This sounds logical to us as Maybank may be required tobring in capital if it is required to locally incorporate itsSingapore subsidiary, which currently holds a qualified fullbanking licence," HwangDBS Vickers Research said in a note onMonday.

Maybank said on Monday it completed the bookbuildingexercise for the private placement, the largest so far inMalaysia's corporate history.

The placement is a proactive move to boost Maybank's equitycapital ahead of the implementation of the stringent newsolvency requirements of the Basel III global bankingregulations, Maybank said in a statement.

The issue price was fixed at 8.88 ringgit a share, Maybanksaid, while the total number of shares to be issued represents4.98 percent of the enlarged issued and paid-up share capital ofMaybank as at Sept. 30.

The private placement exercise is expected to be completedno later than the middle of October, added Maybank.

HwangDBS maintained its 'buy' rating on Maybank stock with atarget price of 11.10 ringgit.

"Maybank remains our top pick and we believe our investmentthesis of high dividends and strong earnings momentum remainsintact despite these developments," said HwangDBS.

The stock was down 0.56 percent at 8.94 ringgit,underperforming the broader index's 0.15 percent drop.

0157 GMT

(Reporting by Yantoultra Ngui in Kuala Lumpur; Editing byGopakumar Warrier; yantoultra.ngui@thomsonreuters.com)

Keywords: MARKETS MALAYSIA STOCKSNEWS/MISC