KUALA LUMPUR (Oct 30): Mega Fortris Bhd (KL:MEGAFB) lost about a billion ringgit in value as its shares plunged another 19% on Friday, extending the previous day's rout and triggering an unusual market activity query from Bursa.
Short selling of the stock was also suspended for a second day.
The counter opened optimistically at RM3 after the previous day's close of RM2.74, but hit an intraday low of RM2.07 before recovering some losses to end the day at RM2.22. About 7.7 billion shares exchanged hands.
That closing price values the security seal specialist at RM1.88 billion, wiping out over a billion ringgit in market capitalisation since the stock closed at an all-time high of RM3.45 on Wednesday.
The Edge has reached out to the group for comment. There is no analyst coverage for the stock, according to Bloomberg.
Bursa Malaysia is asking the company whether there is any corporate development that has not been previously announced, including those in discussion, as well as any rumour or report that may account for the trading activity.
It was also asked to declare its compliance to listing regulations, especially on immediate disclosure obligations.
In a separate filing, Mega Fortris’ short selling was suspended and will be reactivated on the next trading day.
Mega Fortris' share price had been climbing steadily since in the first half of the year before the steep declines in the past two days, a trend mirrored by GIIB Holdings Bhd (KL:GIIB), which is also being queried for unusual market activity.
Both companies are linked to Datuk Ng Meng Kee. He is Mega Fortris’ non-independent non-executive chairman and has a 67% stake in the company while holding 15% equity in GIIB Holdings.
GIIB told Bursa it is unaware of any reason for its stock to halve in value since Wednesday.