POS (4634) - Hot Stock: Pos Malaysia extends gains on 'surprise' dividend

KUALA LUMPUR (June 30): Pos Malaysia Bhd rose 16 sen or 6% after the company proposed a first and final single-tier dividend of 11.7 sen a share. The dividend is for the financial year ended March 31, 2016 (FY16).

At 12:30pm today, Pos Malaysia shares settled at RM2.94 for a market value of RM1.58 billion. The seventh-largest gainer on Bursa Malaysia saw some two million shares traded.

Pos Malaysia shares extended gains. Yesterday, its share price rose 22 sen to close at RM2.78 following the dividend announcement a day earlier.

The 11.7 sen dividend represents a 4% yield based on Pos Malaysia shares' latest closing price at RM2.78.

Today, analysts said Pos Malaysia's dividend was a surprise for investors as the company had posted weaker FY16 financials.

During FY16, Pos Malaysia's net profit fell to RM63.09 million from RM127.05 million a year earlier. Revenue was higher at RM1.72 billion versus RM1.49 billion.

An analyst told theedgemarkets.com that Pos Malaysia shares gained "after the positive surprise from its announcement on the proposed dividend".

POS (4634) - Hot Stock: Pos Malaysia extends gains on 'surprise' dividend