This article first appeared in Capital, The Edge Malaysia Weekly on June 26, 2017 - July 2, 2017

THREE executive directors of Press Metal Bhd raised their individual stakes slightly in the integrated aluminium manufacturer, collectively acquiring 22 million shares on June 16. That day, 23 million shares changed hands in four direct deals off market at RM2.70 each, just above the RM2.68 they fetched on the open market.

The trades happened ahead of the stock’s suspension on June 19 to facilitate a proposed share swap between the company and Press Metal Aluminium Holdings Bhd as part of an internal reorganisation.

According to filings, Datuk Koon Poh Tat and Koon Poh Kong bought six million shares each while Koon Poh Weng bought 10 million. Poh Tat now holds a direct 3.21% stake in the company while Poh Kong and Poh Weng hold 2.51% and 4.15% respectively. They are also deemed interested in shares held by their respective spouses.

Press Metal’s share price rose to an all-time high of RM2.913 on April 28. Closing at RM2.68 last Tuesday, the stock was up 70.48% year to date.

The rally in the share price was likely due to its improved earnings in FY2016 ended Dec 31. The company posted a record revenue of RM6.65 billion, thanks to increased production, higher aluminium prices and the strengthening of the US dollar against the ringgit, while net profit surged 265% year on year to RM483.57 million. In 1Q2017 ended March 31, net profit rose to RM148.05 million from RM94.56 million during the same period last year.

Over at China Stationery Ltd, 80.4 million shares or a 6.52% stake changed hands in two tranches on June 20. At press time, it was not known who was involved in the transaction.

The transaction price of seven sen was on the higher side of the day’s trading range of 6.5 sen to seven sen. The company has seen a spectacular collapse in earnings and share price in the last five years. During its better days in 2012, CSL had traded as high as RM1.53 but is a penny stock today.

Over at MQ Technology Bhd, a block of 40 million shares, representing a 9.64% stake, was transacted in a direct deal on June 20 at six sen apiece. On the same day, a smaller block of 485,500 shares was transacted at five sen each.

It is not known who was involved in the transactions. On June 2, MQ Technology’s single largest shareholder, Goh Boon Soo, sold 10 million shares at undisclosed prices and now holds a 9.84% stake in the loss-making company.

Some banking stocks, including BIMB Holdings Bhd, CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank), also saw vibrant off-market trades.

Maybank saw 58.5 million shares worth RM562.97 million traded at RM9.62 to RM9.65 each during the period under review. This included the transaction of 24 million shares worth RM230.88 million — the single largest by value during the period — at RM9.62 on June 19.

Closing at RM9.64 last Tuesday, the stock was up 17.56% year to date, giving the company a market capitalisation of RM101.4 billion — the largest on Bursa Malaysia.

A total of 23 million BIMB Holdings shares worth RM103.5 million were transacted at RM4.50 each in three trades between June 15 and 20.

CIMB Group, meanwhile, saw a total of 9.56 million shares worth RM64 million change hands at RM6.67 to RM6.76 during the period. The stock closed at RM6.64 last Tuesday, up 47.2% year to date and giving the company a market capitalisation of RM60.38 billion. 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.