This article first appeared in The Edge Financial Daily, on March 7, 2016.

Perwaja Holding Bhd (-ve)

SHARES of steelmaker Perwaja (fundamental: 0/3; valuation: 0/3) rose 16.7% to 14 sen yesterday, despite the absence of new material announcements. Some 4.5 million shares changed hands.

The stock has been ‘red flagged’ by the system due to its low fundamental score, suggesting that investors should exercise extra caution while trading in its shares.

Perwaja announced its financial results for the second quarter ended Dec 31, 2015 (2QFY16) last Monday, which saw its loss before tax widen to RM165 million from RM69.2 million a year ago, due mainly to fair value adjustment of trade payables of RM126.4 million, and depreciation charges of RM19.7 million.

Meanwhile, revenue stood at RM162,000, derived from its training and education segment. Its steel billets segment, meanwhile, has ceased operations since August 2013, when the gas and electricity supplies to its Kemaman Plant were curtailed.

The PN17 company announced last Tuesday that Bursa Securities had approved of its application for an extension to submit its regularisation plan. The new deadline is now March 31.