KUALA LUMPUR (March 28): Firmed-up plans on the equal partnership between CIMB Group Holdings Bhd and China Galaxy International Financial Holdings Ltd (CGIF) pushed CIMB and Olympia Industries Bhd counters to a one-year high.

At 10.34am, Olympia, which plans to dispose of its stake in Jupiter Securities Sdn Bhd to CIMB — a disposal that reportedly would facilitate the 50:50 joint venture (JV) between CIMB with CGIF, climbed 1.5 sen or 10.7% to 15.5 sen. About 44.2 million shares were traded, giving it a market capitalisation of RM153.5 million.

The stock, which used to trade around RM1.80 a decade ago, increased 25% from Jan 8, 2016 till today. Year to date, it has swelled 106.67%.

Meanwhile, CIMB gained nine sen or 1.64%, after paring some gains, to RM5.59 with 2.8 million shares changing hands, valuing it at RM49.8 billion. The stock has seen 25.95% in returns in one year.

In a March 20 announcement, Olympia confirmed a media report of its disposal plans in the stockbroking unit and has been in discussions with interested parties.

The media report stated that CIMB plans to acquire loss-making Jupiter Securities for its stock broking licence, which is required by the CIMB-China Galaxy JV in order to commence operation in Malaysia.

CIMB may want to place all its stock broking business in the JV company, the report said. The bank already has a stock broking licence but it is solely for its current investment-banking arm.

Yesterday, CIMB announced to the local exchange that it expects the strategic partnership in the stockbroking business with CGIF to kick off by the second quarter of 2017.

It said China Galaxy Securities Co Ltd, the parent of CGIF, had announced the passing of resolutions by its board of directors in connection with the proposed partnership through the Shanghai Stock Exchange and the Stock Exchange of Hong Kong on March 24, 2017.

Under a heads of terms inked in October, CIMB and China Galaxy Securities would explore a strategic partnership in the stockbroking business comprising institutional and retail brokerage, equities research, and associated securities businesses, as well as to identify further areas of cooperation in markets where they operate.