STOCKS NEWS MALAYSIA-Kenanga downgrades SEG International

Tue Nov 13, 2012 10:27pm EST

Kenanga Research downgraded SEG International Berhad to 'market perform' from 'outperform' to reflect the higher education firm's increased staff costs and changed dividend policy.

SEG International's staff costs have risen more than expected and its number of new students is growing slowly, Kenanga said in a note on Wednesday.

The research house viewed the new discretionary dividend policy as unfavourable, saying "we believe that the group will gear up its existing net cash position at the expense of a higher dividend payout going forward."

At 1120 (0220 GMT), SEG International was down 0.51 percent at 1.97 ringgit, while the KLSE composite index was up 0.01 percent at 1637.82 points.

(Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Subhranshu Sahu; siva.sithraputhran@thomsonreuters.com)

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