KUALA LUMPUR (Jan 12): Kuchai Development Bhd shares rose as much as 52 sen or 30% to hit limit up on expectation the company will reap dividends from Singapore-listed Great Eastern Holdings Ltd's potential move to list its Malaysian insurance arm.
Kuchai holds shares in Great Eastern Holdings, which owns Great Eastern Life Assurance (M) Bhd. In Malaysia, news reports indicate Bank Negara Malaysia requires foreign insurers to cut their stakes in their Malaysian units to ensure Malaysian shareholders own at least 30% in the Malaysian entities.
At Bursa Malaysia, Kuchai shares settled at their highest so far today at RM2.28 at 12:30pm, with some four million shares exchanged. Kuchai was the third-largest gainer across Bursa Malaysia.
According to Kuchai's latest annual report, its quoted equity investments include companies listed on Bursa Malaysia and Singapore Exchange. "For financial [year] ended 30 June 2017, the bulk of quoted equity securities on the basis of market valuation comprised Great Eastern Holdings Ltd and Singapore Press Holdings Ltd."