OCBC added to Alpha Picks list by UOB KayHian

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UOB KayHian is adding OCBC shares to its Alpha Picks list.

“Management will evaluate the divestment of a 30 percent state in Great Eastern Life Malaysia through an IPO or trade sale,” the brokerage said in a note on Friday. “Proceeds from the divestment could be reinvested to further propel growth in its core commercial banking business.”

It noted that Great Eastern will need to submit the plan to Malaysia’s central bank, Bank Negara, by June, with the plan’s execution likely in the second half of 2018.

The brokerage rates OCBC at Buy, with a S$14.90 target. On Friday, shares of OCBC ended down 1.14 percent at S$13.06.