Friday, April 29, 2011

OSK maintains 'buy' call on MMC

OSK Research is maintaining a "Buy" call on MMC Corporation, with an unchanged fair value of RM3.62.

The company based its optimism on expectation that some good news was coming MMC's way following news that Gulf International Investment Group Holdings Sdn Bhd had entered into a joint-venturent with Aluminium Corp of China (CHALCO) for the development of a US$1.6 bil aluminium smelting plant in Sarawak.

MMC Corp Bhd is the flagship company of local tycoon Tan Sri Syed Mokhtar Albukhary.

Syed Mokhtar's companies had previously worked with CHALCO, especially to set up a US$3 billion smelter in Jazan Economic City, Saudi Arabia.

"With MMC having built a relationship with CHALCO in relation to Jazan some four years ago, we continue to see Syed Mokhtar's companies being mutually beneficial," OSK Research said.
As at 3.15 pm, MMC Corp stood at RM2.68, down one sen. - Bernama

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