E&O up, despite S P Setia not looking at acquiring stake

KUALA LUMPUR: Shares of Eastern and Oriental Bhd (E&O) edged up in afternoon trade on Thursday, Aug 4 as the positive outlook for the property company outweighed a statement that S P Setia Bhd was not looking at acquiring it.

At 3.34pm, E&O was up two sen to RM1.68, off the earlier high of RM1.75. There were 9.34 million shares transacted.

S P Setia was unchanged at RM3.91, off the high of RM3.96. There were 108,200 units done.

S P Setia announced during the midday break it was on the lookout for strategic partnerships and opportunities to increase its land bank. However, it clarified that it was not currently in any acquisition or takeover talks with E&O or its shareholders.

CIMB Research had said in a recent report that E&O has many attractions including the rights to reclaim some 760 acres of the most prime landbank on Penang island.

"But E&O is not alone in being undervalued as there is a long list of Malaysian property companies that are trading at steep discounts even to net tangible asset.

"We remain bullish on the property sector, which could be catalysed by M&A speculation. Mah Sing remains our top pick while S P Setia is a core holding," it said.

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