KUALA LUMPUR (June 15): Bursa Malaysia Securities Bhd has fixed the lower limit price of Paragon Union Bhd (KL:PARAGON) at RM2.29 after the stock hit its static limit-down for two consecutive trading days.
As a result, the counter’s lower trading limit will remain at RM2.29 on Tuesday, instead of being reset lower under the usual price limit mechanism. Under Bursa’s rules, if a stock hits its lower limit price on one market day and repeats the same on the following market day, the exchange may maintain the limit at that level rather than allow it to be adjusted downward.
This is the regulator’s second such action involving a stock in a week. Last week, Bursa froze Tanco Holdings Bhd’s (KL:TANCO) share price at 20 sen on Friday after the company’s shares hit limit-down for four consecutive trading days. Prior to that, the last action was for Pertama Digital Bhd’s (KL:PERTAMA) shares in October 2024.
Paragon Union’s share price plunged as much as 29.97%, or 98 sen, to RM2.29 on Monday — its lowest level in over a year — giving the carpet and automotive carpet manufacturer a market capitalisation of RM231.56 million. The stock is down 33.62% year to date.
The counter has been under selling pressure since last Friday, prompting Bursa to issue an unusual market activity (UMA) query. In response, the group said it is not aware of any reasons for the sharp decline in its share price. Since trading at RM4.88 on May 28, the company has shed about RM261.89 million in market value.
Paragon Union’s 12-month trailing price-to-earnings ratio of 194.2 times remains the highest among its peers despite Friday’s limit-down, according to AskEdge data. In comparison, Sorento Capital Bhd (KL:SORENTO) trades at a PE ratio of 17.7 times.
Paragon Union’s largest shareholder is executive chairman Koon Hoi Chun, who holds an indirect 53.22% stake via AKK Capital Sdn Bhd (39.54%) and Incredible Ark Sdn Bhd (13.68%), in addition to a direct 1.98% interest.