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STOCKS NEWS MALAYSIA-RHB raises Axiata's target price

RHB Research has increased its target price on Axiata Group Bhd to 7.15 ringgit from 6.60 ringgit after updating its valuation paramaters on the company.

At 12:37 pm (0437 GMT), shares in Axiata were up 1.19 percent at 6.78 ringgit, their all-time high. The stock has gained nearly 30 percent since the beginning of the year.

"We continue to like Axiata for decent growth prospects from regional exposure and cheaper valuations relative to its domestic peers," said RHB. The brokerage maintained its 'Outperform' call on the stock.

Axiata will have room for further corporate exercises, which may involve the consolidation of its regional businesses, after the establishment of a $1.5 billion Islamic bond facility in July. Sri Lanka and Bangladesh may be suitable for consolidation due to the market's overcrowding, it said.

RHB commended Axiata's decision to ramp up capital expenditure in Indonesia, where the market players are growing aggressive. In Malaysia, the company's business remains the mobile segment, while the recently introduced high-speed broad band (HSBB) strategy was positioned as a complementary product, it said.

1228 (0428GMT)

(Reporting by Al-Zaquan Amer Hamzah in Kuala Lumpur; alzaquan.amerhamzah@thomsonreuters.com; Editing by Prateek Chatterjee)

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STOCKS NEWS MALAYSIA-Kenanga raises KLCC Property's target price

Kenanga Research raised its target price on KLCC Property Holdings Bhd to 6.87 ringgit from 6.00 ringgit on the potential listing of the property company's real estate investment trust (REIT).

"We strongly believe the KLCC Property REIT-ing exercise will take place within the next 12 months, given the strong price run-ups, which was similarly observed with IGB Corp Bhd's

KrisAssets Holdings Bhd performance prior its IGB REIT announcement," the research house said in a note on Friday.

Maintaining its 'outperform' call on the counter, Kenanga said the higher target price assumed that all of KLCC Property's investment properties (except LotD1 landbank) will be REIT-ed.

The higher target price was also based on the assumption of 100 percent payout (similar to sizeable Malaysian REITs) and a gross dividend yield target of 4.6 percent for the year ending Dec 31, 2013.

By 0400 GMT, KLCC Property shares were 0.16 percent lower at 6.18 ringgit, underperforming the broader index's 0.04 percent rise.

1202 (0402 GMT) (Reporting by Yantoultra Ngui in Kuala Lumpur; yantoultra.ngui@thomsonreuters.com)

Keywords: MARKETS MALAYSIA STOCKSNEWS/AXIATA