KUALA LUMPUR (Nov 7): AmInvestment Bank Bhd cut its target price for Hong Leong Financial Group Bhd shares to RM17.60 from RM18.10 after HLFG said it terminated talks on the proposed sale of its insurance units. HLFG owns 70% and 65% stakes in Hong Leong Assurance Bhd and Hong Leong MSIG Takaful Bhd respectively. Today, AmInvestment analyst Kelvin Ong wrote in a note that AmInvestment had however maintained its "buy" recommendation for HLFG shares. At 11:59am, HLFG shares fell 34 sen or 2% to RM15.10 for a market value of RM17.68 billion. "We have assigned a lower P/BV of 3.0X (previously 3.5x) on Hong Leong Assurance (HLA) after negotiations to dispose of its 70.0% stake in HLA and 65.0% shareholdings in Hong Leong MSIG Takaful were terminated," he said.

Source: The Edge Markets November 07, 2016 04:22 UTC