Monday, September 18, 2006

UTAMA - Still See Upside Speculation

UBG’s share price could still see upside speculations in the short term, driven by news flows of the likely stake sale. Therefore, despite the latest rejection of EPF’s offer by UBG, investors with a higher risk appetite could still adopt a Trading Buy strategy on the stock, but bearing in mind that UBG’s share price has already been rallying over the last several months. For longer-term investors, they should continue to hold on to their investments pending further likely developments on the issue, especially the possibility that UBG may obtain a better offer ahead.

Note also that Datuk Seri Sulaiman Abdul Rahman Taib has resigned as a director of UBG on 13 September, subsequent to his resignation from his chairman and director post at RHB and as a director of RHB Capital Bhd (RHB Cap) on 7 June. This suggests that UBG could still be interested to exit the RHB Group, and it is probably a matter of pricing.

Full Write-up: netresearch

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