KUALA LUMPUR: Analysts were not surprised that Astro Malaysia Holdings Bhd failed to take off on its relisting today, closing at RM3.00 -- the same level as its initial public offering.

However, Affin Investment Bank Head of Retail Research Dr Nazri Khan said it was natural to see a defensive stock like Astro trend slowly upwards.

He told Bernama profit taking pared down some stocks including Astro although the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) saw a "fresh high" today.

It is natural to see some profit taking whern the market reached a new all time high such as today.

The FBM KLCI reached an intraday high of 1,670.16 today but profit taking saw it retreating to close only 0.93 of a point higher at 1,666.35.

"Two main catalysts that could help move up the shares are the upcoming general election and positive news on the upcoming broadcast rights for the English Premier League," Nazri said.

In the near term, he said the Astro stock could reach RM3.12 based on the PE (price earning) of 32 times of next year's earning.

"It can hit RM4.00 per share on the assumption that the benchmark composite index touches 1,700 level by end of this year," he said.

Astro shares were traded at between RM3.00 and RM3.11 today.

One analyst said investors were also cautious about its prospects as there were several subscription based pay-TV service already in the market or showing interest for a piece of the action.

At the moment, the price of RM3.00-RM3.10 would be more reasonable for the counter, he added.

Astro has about 3.1 million residential pay-TV subscriber base.

Although there is room for growth, more players are interested to enter the market and the price of contents are also likely to increase, an analyst said.-- BERNAMA