Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD
Research House: ECMLIBRA

KUALA LUMPUR: Dayang Enterprise extended its losses on Wednesday, Nov 10 as investors were negative about its proposed rights issue.

At 11.52am, Dayang was down 11 sen to RM2.18. Volume traded was 1.23 million shares.

The FBM KLCI was down 0.41 of a point to 1,526.12. Turnover was 821.5 million shares valued at RM912.35 million. There were 289 gainers, 414 losers and 293 stocks unchanged.

ECM Libra Investment Research had raised its estimates to reflect stronger marine charter margins. It added'' Dayang has gained significantly in recent weeks, surging past its previous RM2.65 target price and the stock was fully valued now.

'Also, we view that the much talk about oncoming orders is already be priced in. We are revising Dayang from buy to HOLD as there is only 4% upside to our revised TP of RM3.17.

'The revised TP reflects FY11 EPS pegged to a 15 times price-to-earningsE (15 times is the average PE of small-mid cap oil & gas stocks). To note, the group announced a proposal for a one-for-four bonus issue to be followed by a one-for-four rights issue on Monday,' it said.