KUALA LUMPUR (March 24): Shares of MMAG Holdings Bhd (KL:MMAG) tumbled as much as 17.5 sen or 22.44% to 60.5 sen in evening trade on Monday, triggering Bursa Malaysia Securities' suspension of intraday short selling for the remainder of the day.

The stock was initially off to a good start, opening at 78.5 sen, up from its previous close of 78 sen, and climbed to an intraday high of 80 sen. The counter then lost its momentum, hitting an intraday low of 60.5 sen before recovering to close at 64.5 sen — still down by 13.5 sen or 17.31%.

Trading activity surged, with 9.61 million shares changing hands, nearly four times its 200-day average trading volume of 2.59 million shares. At the closing price of 64.5 sen, the company was valued at RM1.47 billion. Its share price has gained nearly 25% since the beginning of the year.

In a filing, Bursa said short selling for MMAG will resume at 8.30am on Tuesday.

The heavy selling pressure on the logistics service provider remains unexplained, although the company disclosed after market close that its non-executive chairman, Tan Sri Mohd Khairul Adib Abd Rahman, a former director general of public service, had resigned to pursue other interests.

Mohd Khairul was re-elected to the board just under a month ago. He joined the board on Feb 7, 2022.

MMAG recently returned to profitability, reporting a net profit of RM25.4 million for FY2024 on revenue of RM242.1 million, marking a turnaround after posting losses since 2015.

The company was classified as a Guidance Note 3 (GN3) entity in October 2024, a status typically assigned to financially distressed ACE Market-listed firms, after its shareholders’ equity fell below 50% of its issued share capital for the financial year ended March 31, 2023 (FY2023).

Prior to that, in July 2024, MMAG changed its financial year-end from March to September. In November 2024, Bursa Securities granted the company a waiver from being classified as an affected listed issuer under GN3 following fundraising exercises that improved its financial standing.

MMAG, which operates courier, logistics and air cargo services, is planning to expand its aviation operations and invest in technology to enhance its fulfilment and delivery processes.

Shareholders are set to vote on the proposed diversification at an extraordinary general meeting (EGM) scheduled for April 9. The EGM will also seek approval for a proposed share buyback of up to 10% of its total issued share capital.

Aside from this, the company recently announced the appointment of Ahmad Luqman Mohd Azmi, the former CEO of Malaysia Aviation Group’s (MAG) airlines business, as its executive director in February.

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