KUALA LUMPUR (Oct 29): Two companies linked to businessman Datuk Ng Meng Kee saw sharp declines in their share prices on Thursday, prompting Bursa Malaysia to query one of them.
Ng is non-independent non-executive chairman of Mega Fortris Bhd (KL:MEGAFB), and has an almost 67% stake in the security seals specialist. He is also a substantial shareholder of rubber compounds manufacturer GIIB Holdings Bhd (KL:GIIB), with about 15% equity.
Both companies saw declines of over 20% in their shares.
Mega Fortris lost over half a billion in value after its share price fell from RM3.45 on Wednesday to RM2.74 at Thursday's close, with 6.87 million shares traded. Its market capitalisation fell from RM2.91 billion to RM2.32 billion. The Edge has reached out to the group for comment.
GIIB Holdings, meanwhile, lost 23.9% of its market capitalisation after its shares dove from 71 sen to 54 sen at Thursday's close, with its value dropping from RM586.7 million to RM446.2 million. GIIB was also the fourth most actively traded stock on Bursa Malaysia, with 58.51 million shares changing hands.
This steep drop prompted Bursa Malaysia Securities to query GIIB Holdings for unusual market activity (UMA), the company's third this year.
Both counters were steady climbers in the weeks prior to Thursday's sharp decline, but were still several times higher since the start of the year.
Mega Fortris started the year at 87.4 sen and has been on an upward trajectory ever since. It broke the RM1 mark in March, and increased by another ringgit in August and mid-October, and reached an all-time high of RM3.48 on Thursday morning before falling off a cliff after the midday break. Still, Thursday's closing price of RM2.74 puts the counter 213% higher year to date.
GIIB's start to the first half of the year was unremarkably flat in the 6 to 8 sen range, but the counter broke into double-digit territory late in April and never looked back. It peaked at 74 sen on Oct 23 and stayed in the 70s before Thursday's drop.
That late April surge in share price was followed by two UMA queries. GIIB both times cited a planned foray into the healthcare sector for the rise and said it in compliance with all Bursa rules.
Ng's stake in Mega Fortris comprises a 1.83% direct interest and a 65% indirect interest through investment vehicle Mega Fortris Global Pte Ltd and his child Aaron Mikhel Ng Khye Weng.
He has a 7.17% direct stake in GIIB Holdings and a 7.87% indirect interest via Mega Fortris Global Pte Ltd and Mega Fortris Capital Ltd.