KUALA LUMPUR, Dec 9 — Public Bank has emerged as the biggest gainer among the 30-index-linked counters on Bursa Malaysia this morning, following its bonus issue announcement.

As at 10am, the banking stock rose RM1.54 or 8.34 per cent to RM20.00 with 9.29 million shares changing hands, contributing 11.65 points to the FTSE Bursa Malaysia KLCI.

Yesterday, the group announced a proposed issuance of up to 15.53 billion bonus shares on the basis of four bonus shares for every one existing share.

Upon completion of the exercise, its share capital would remain at RM9.41 billion, but the total number of shares will rise to 19.41 billion; a substantial increase from the current 3.88 billion shares. 

The exercise is expected to be completed by the first quarter of financial year 2021.

Meanwhile, in a note today, MIDF Amanah Investment Bank Bhd takes a positive view of the proposed bonus issue.

"Besides rewarding shareholders, we opine that this will improve liquidity and affordability of the stock.

"Given the consistent earnings performance of the group — barring the unprecedented circumstances this year — we expect that this will also enhance the attractiveness of the stock to investors,” the research firm said.

As such, it has maintained a "buy” call on Public Bank, with an unchanged target price of RM20.50. — Bernama