KUALA LUMPUR: Shares and call warrants of Datasonic Group Bhd fell yesterday after Bursa Securites drew attention to the sharp price rise of its stock.

The electronic-identification specialist was slapped with an unusual market activity query on Feb 18. The company in its response said it was not aware of any corporate development or explanation that could give rise to the unusual trading activities in its securities.

The price of both Datasonic shares and call warrants fell following yesterday’s statement by Bursa. The stock ended yesterday 14 sen or 2.89% lower at RM4.71 from RM4.85 on Tuesday, while its call warrants closed 5 sen or 10.87% lower at 41 sen.

At yesterday’s level, its share price had more than doubled from RM2.14 on Feb 4.

In the statement, the stock exchange regulator advised investors to exercise caution and to make informed decisions in the trading of Datasonic shares and call warrants, notwithstanding the announcements on its recent quarterly results and its proposed bonus issue.

“Bursa Securities will not hesitate to take appropriate regulatory action to ensure fair and orderly trading of Datasonic and its call warrants,” it added.

Datasonic reported a net profit of RM22.82 million for the fourth quarter ended Dec 31, 2013, which is six times higher than the RM3.77 million reported in the previous corresponding quarter. Revenue rose 72.89% to RM72.55 million from RM41.97 million.

The company had on Feb 28 declared a one-for-one bonus issue of 675 million new shares on the Main Market of Bursa Malaysia.

This article first appeared in The Edge Financial Daily, on April 3, 2014.