Telekom jumps 6.97% on changes at helm

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KUALA LUMPUR (June 7): Shares in Telekom Malaysia Bhd (TM) rose 6.97% in early trade today after its managing director and group chief executive officer Datuk Sri Mohammed Shazalli Ramly yesterday resigned from his positions effective immediately.

At 9.18am, TM rose 26 sen to RM3.99 with 1.71 million shares done.

TM also announced the appointment of its deputy group chief executive officer, Datuk Bazlan Osman, as the acting group CEO.

CIMB IB Research in a note June 6 said TM’s convergence strategy to continue and day-to-day operations should be unaffected.

“Maintain Hold call with an unchanged target price of RM4.30. We remain concerned over the potential risk of regulatory-driven broadband price cuts,” it said.

CIMB Research said the appointment of Bazlan as the new acting Group CEO from his current role as deputy Group CEO should ensure continuity, given his familiarity with the business and organisation.

“Datuk Bazlan was the Group CFO of TM since 2005, before being appointed as its deputy Group CEO in Apr 2017. We gather he has strong internal staff support, built up from his many years at TM,” it said.