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

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

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

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

MIDF raised its target price on MISC to 6.01 ringgit per share from 5.65 ringgit and kept its 'buy' recommendation, in view of the possible credit upgrade from rating agencies and enhanced 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 by Prateek Chatterjee; yantoultra.ngui@thomsonreuters.com)

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10:30 STOCKS NEWS MALAYSIA-RHB starts Perisai Petroleum with outperform

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

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

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

"We believe Perisai can internally fund its purchase of the new jack-up rig. However, beyond that, we expect Perisai to raise capital through equity issuance to fund new asset acquisitions," 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 would likely provide a step-up in recurring income in future.

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

0213 GMT

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

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

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

"This sounds logical to us as Maybank may be required to bring in capital if it is required to locally incorporate its Singapore subsidiary, which currently holds a qualified full banking licence," HwangDBS Vickers Research said in a note on Monday.

Maybank said on Monday it completed the bookbuilding exercise for the private placement, the largest so far in Malaysia's corporate history.

The placement is a proactive move to boost Maybank's equity capital ahead of the implementation of the stringent new solvency requirements of the Basel III global banking regulations, Maybank said in a statement.

The issue price was fixed at 8.88 ringgit a share, Maybank said, while the total number of shares to be issued represents 4.98 percent of the enlarged issued and paid-up share capital of Maybank as at Sept. 30.

The private placement exercise is expected to be completed no later than the middle of October, added Maybank.

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

"Maybank remains our top pick and we believe our investment thesis of high dividends and strong earnings momentum remains intact 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 by Gopakumar Warrier; yantoultra.ngui@thomsonreuters.com)

Keywords: MARKETS MALAYSIA STOCKSNEWS/MISC