KUALA LUMPUR (Oct 29): Perak Corp Bhd (KL:PRKCORP), a financially troubled developer, has been queried by the exchange regulator over unusual market activity that lifted its stock over a six-year high.

Bursa Malaysia has asked the state-controlled firm to confirm whether there were any unannounced corporate developments, negotiations, rumours, reports, or any other possible explanations for the surge in trading activity.

The Practice Note 17 (PN17) company is also required to confirm its compliance with listing requirements, particularly regarding the timely disclosure of material information.

The query comes after Perak Corp's share price rose as much as 20% or 15 sen to 89 sen, its highest level since May 2018. The stock pared gains to close at 85 sen after more than two million shares changed hands on Wednesday.

At the last price, Perak Corp has a market capitalisation of RM85 million.

Perbadanan Kemajuan Negeri Perak, an agency of the Perak state government, is the largest shareholder with a 52.9% stake in Perak Corp.

Perak Corp has proposed a regularisation plan that consists of a capital reduction, joint development project, land sales, entitlement from a joint development, and preference share issuance to settle debt owed to creditors.

The company fell into PN17 status in February following the closure of its Movie Animation Park Studios theme park in Ipoh and after the company defaulted on its term loan. The company had also said it was not able to declare solvency.