KUALA LUMPUR (March 12): Food and beverage-based Nestle (M) Bhd and Fraser & Neave Holdings Bhd (F&N) shares surged to fresh highs today on foreign buying.
Nestle rose as much as RM5.80 or 4% to RM150.80 while F&N climbed as much as 86 sen or 3% to RM31.84. At 4:15pm, Nestle was transacted at RM150.40 while F&N was traded at RM31.70.
On FBM KLCI-linked Nestle, analysts told theedgemarkets.com the share price rise was largely attributed to foreign buying.
“The share price movement is mainly driven by passive funds where they buy Nestle to track the index (KLCI)," Affin Hwang Investment Bank Bhd analyst Tan Jun Zhang said. At 4:15pm, the KLCI was up 16.05 points at 1,859.97.
Tan said Affin Hwang maintained its Nestle share target price at RM97. "The share price (of Nestle) has run ahead of its fundamentals,” he said
On F&N, Rakuten Trade research vice president Vincent Lau said the shares could be tracking the buying support in Nestle and the KLCI's rise.
Lau said "investors could be buying the stock (F&N) to capture the price differentials (between Nestle and F&N) in terms of both absolute value and valuation."