Malaysia Stocks: British American, KNM, Maybank, PBA, Sunway

Malaysia’s FTSE Bursa Malaysia KLCI Index (FBMKLCI) rose for a fourth day, adding 5.91, or 0.4 percent, to 1,472.23 at the 12:30 p.m. local time break, set for its highest close since Sept. 22.

Banks: Malayan Banking Bhd. (MAY) led banks higher after CIMB Investment Bank Bhd. increased its share-price estimates for the lenders to reflect the industry’s “favorable” outlook. Malayan Banking climbed 1.1 percent to 8.91 ringgit, set for its highest close since Jan. 15, 2008. Its share estimate was raised to 10.50 ringgit from 9.50 ringgit, Winson Ng, an analyst at CIMB said in a report today. Affin Holdings Bhd. (AHB) gained 0.6 percent to 3.13 ringgit.

Builders: Sunway Holdings Bhd. (SGW MK) climbed 3.1 percent to 1.99 ringgit, heading for its highest close since Nov. 7, 2007. IJM Corp. (IJM MK) added 2.5 percent to 5.27 ringgit and WCT Bhd. (WCT MK) gained 2 percent to 3.09 ringgit. Investors should buy builders such as Sunway because they will outperform the stock market from the fourth quarter as the government accelerates infrastructure projects, Joshua Ng, an analyst at RHB Research Institute Sdn. said in a report today.

British American Tobacco (Malaysia) Bhd. (ROTH) , the nation’s largest tobacco company, fell 1.3 percent to 47.78, the most since Sept. 23, after its stock rating was cut to “sell” from “hold” at Maybank Investment Bank Bhd., which said in a report today 2011 profit may decline as higher cigarette prices erode demand.

KNM Group Bhd. (KNMG) , an oil and gas services provider, rose 4.4 percent to 48 sen, headed for its highest close since Aug. 30, after HwangDBS Vickers Research Sdn. upgraded the stock to “buy” from “hold” amid improved growth prospects.

PBA Holdings Bhd. (PBAH) , a water treatment operator, advanced 3 percent to 1.03 ringgit, on course for its highest level since April 24, 2009. OSK Research Sdn. increased its share price estimate to 1.48 ringgit from 1.23 ringgit to reflect stronger earnings growth prospects, according to a report by analyst Vincent Lim Vi Ming today.

Zelan Bhd. (ZELN) , a construction company, gained 2.1 percent to 73.5 sen, set for its highest close since Aug. 17. The company said it sold 2.63 million shares of IJM Corp. (IJM MK) for 13.5 million ringgit or at an average price of 5.13 ringgit a share.

To contact the reporter on this story: Chan Tien Hin in Kuala Lumpur at thchan@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net

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