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Friday, November 14, 2014

Hwang Capital rises 2% after Edge Research says corporate exercise likely


KUALA LUMPUR (Nov 14): Hwang Capital (M) Bhd  rose as much as 2% after the stock was featured with the likelihood of corporate exercise in the Edge Research report today.

At 10.59 am, Hwang gained 4 sen or 2% to RM2.00 with 318,600 shares done.

The Edge Research highlighted the cash-rich entity was looking for a new core business after disposing key subsidiary Hwang DBS Investment Bank to Affin Holdings Bhd and exiting its commercial bank business in Cambodia.

Currently, the company has yet to identify any potential acquisition.

The firm’s remaining businesses are in money lending and property management, as reported in The Edge Financial Daily today.

Hwang’s cash at hand stood at RM372.8 million as at July 31, 2014, equivalent to RM1.46 per share – or 73.1% of its market capitalisation of RM510.3 million.

“With such a large cash pile, it will be interesting to see what industry Hwang ventures into next,” it said.

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