KUALA LUMPUR (Oct 20): Shares of Emico Holdings Bhd fell 2.22% this morning after it proposed a capital reduction by cancelling 90 sen out of the par value of every existing ordinary share of RM1 each to pare down its accumulated losses.

At 9.31am, Emico fell half a sen to 22 sen with 808,000 shares traded.

Emico said the proposed exercise is expected to give rise to a credit of approximately RM86.33 million, which will be utilised to set off its accumulated losses.

As at March 31, 2016, it had accumulated losses of RM81.28 million at company level and RM74.54 million at group level.

"The remaining credit after setting off the accumulated losses will be credited to the retained earnings of the company," it added.