KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Retain outperform recommendation with target price (TP) of RM1.08 The Group announced overnight that it has entered into a sales and purchase agreement with Reuters International Holding S.A.R.L. and Systex Capital Group Inc. for the acquisition of the entire equity interest in AFE Solutions Limited (AFE) for an initial purchase consideration of USD20.6m (RM85.3m), to be paid in sh. We are positive on the acquisition, and see the transaction as a value accretive and synergistic one, enabling the Group to fast track its regional expansion plans. We make no changes to our earnings estimates at this juncture until more milestones with regard to the conditions precedent are met (completion expected 1Q2017), though we would like to highlight a potential 30%-40% jump in forward earnings based on an average RM6.5m consolidation of AFE’s numbers. Our Outperform call is reaffirmed with a PE derived target price of RM1.08 premised on a 30x multiple to FY...