Yesterday, the volume exceeded 67 million shares. The counter registered a gain of 15 sen to close at RM1.80. This was despite the conglomerate coming out on Thursday to refute speculations that its controlling shareholder Tan Sri Syed Mokhtar Albukhary was mulling plans to privatise the company. According to dealers, investors' interests in DRB-HICOM remained strong due to the increasing likelihood that the company would secure Khazanah Nasional Bhd's divested stake of 32.2% in Pos Malaysia Bhd through Bank Muamalat.
A report by OSK Research explained that a partnership with Pos Malaysia would be strategic in turning around Bank Muamalat and expand its presence through Pos Malaysia's extensive network of more than 1,000 post offices nationwide.
Meanwhile, there was also talk that DRB-HICOM could secure defence deals worth billions of ringgit from the Government soon. There were also some feel-good factors for the conglomerate's automotive business arising from its recently signed memorandum of understanding with German auto producer Volkswagen AG for a potential partnership.
DRB-HICOM saw its net profit more than double to RM132.2mil in the second quarter ended Sept 30 compared with RM61.7mil in the previous corresponding period. The continued improvement in DRB-HICOM's financial performance was a reflection that the company's fundamentals were strengthening. - By CECILIA KOK
The comments above do not represent a recommendation to buy or sell.
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