KUALA LUMPUR (Oct 3): Bursa Malaysia raised caution over unusual market activity in Pertama Digital Bhd (KL:PERTAMA) as the stock took a steeper dive and extended its loss into the seventh straight day.
The company is unaware of the reasons for the recent decline in the stock's price, Pertama Digital executive director Sabri Ab Rahman said in a statement. He stressed that the company remains strong and well-positioned for sustainable growth.
"We have also completed a strategic cost-cutting exercise and streamlined our operations to ensure healthy cash flow," Sabri said, adding that the company is now operating more efficiently without the need for external funding.
Shares of Pertama Digital hit a limit-down of RM1.12, the lowest since August 2022, after falling 30% or 48 sen on Thursday. Trading volume totalled 419,300 shares by the midday trading break.
Pertama Digital has been asked by Bursa Malaysia to explain the sharp decline and disclose to the public immediately whether the company was aware of any reasons that could account for the trading activity.
Thursday’s decline adds to Wednesday’s 18% decline. All in all, the continuous sell-off since Sept 26 has wiped out some RM434 million from its market value.
On Wednesday, Transport Minister Anthony Loke announced that the integration of Malaysia's national digital ID platform MyDigital ID with the MyJPJ application on Oct 10 has been scrapped.
Pertama Digital secured the contract in July to provide public online digital identity onboarding services MyDigital ID.
Pertama Digital operates the mobile application MyPay, which consolidates e-services from Malaysian government agencies into a single digital platform. It also operates the eJamin website, which allows electronic payments for criminal court bail.
No institutional analysts cover Pertama Digital. The stock has fallen over 57% since the start of the year.
Pertama Digital has also received an extension from Bursa Malaysia to submit its regularisation plan by the first week of February 2025. The extension will allow the company to finalise key initiatives, including the proposed acquisition of a controlling stake in Kridentia Tech Sdn Bhd, Sabri said.
The acquisition is “crucial for our growth projections for 2025”, Sabri said, noting Kridentia’s track record and capabilities that “align perfectly with Pertama Digital’s vision”.
“We are eager to finalise this deal as part of our broader regularisation plan,” he said, adding that the full regularisation plan is expected to be submitted before the end of this year ahead of the extended deadline.