By Khairie Hisyam
Despite news that departing SP Setia president & CEO Liew Kee Sin may surface in Eco World Development Group Bhd’s board next week, Eco World continues its sharp drop this week, ending the day’s trading session 35 sen lower at RM4.85 per share — the day’s biggest loser.
Liew Kee Sin
Today’s 6.73% decline extended the counter’s losses this week to a total of 55 sen or 10.1% since the stock hit an all-time high closing price at RM5.40 at the 5pm bell last Friday.
Last Friday saw the stock surge to RM5.40 — representing a total increase of 5.26% throughout the week since closing at RM5.13 the previous Friday — on the back of its assets injection exercise which was announced on Friday.
Along with other corporate exercises, the injection more than triples Eco World’s land bank to 4,433 acres and boosting its total gross development value (GDV) to RM43.53 billion. Prior to the exercise, Eco World’s land bank totalled 1,325 acres with GDV of RM13.49 billion.
Overall, up to last Friday Eco World had risen some 15.1% since the month began. On April 1, the counter closed at RM4.69 per share after moving relatively sideways within the RM4.60-4.90 band since mid-February.
The two-day losing streak after strongly trending upward earlier this month could signal a drastic correction in Eco World’s price, which appears to have risen high above its actual valuation.
In a report earlier this week, Kenanga Research estimated the company’s ex-all fair value at RM2.27.
Overall, the benchmark FBM-KLCI ended the day 3.6 points higher at 1,859.34 driven by gains from blue chip plantation counters.
However losers heavily outnumbered gainers 728 to 192 while 256 counters remained unchanged. Some 2.5 billion shares worth RM2.2 billion were traded.
“The FBM KLCI rebounded from yesterday’s losses to end 3.60 points higher at 1859.34 points, tracking the overnight gains in Wall Street despite cautious mood on outcome of FOMC meeting today and tomorrow,” said JF Apex Securities.
Top gainer United Plantation rose 64 sen to finish at RM25.20. Other top gainers include PPB Group which ended 22 sen higher at RM16.24 and Kuala Lumpur Kepong (KLK) which finished 16 sen higher at RM23.90. Genting Plantation finished the trading session at RM10.90, up 12 sen.
Notably another top gainer SCGM Bhd rose 17 sen or 41.2% to end the day at RM1.53 per share.
Apart from top loser Eco World, other counters seeing red today include penny stock Stone Master Corporation Bhd which saw a 23.5 sen drop or 41.2% to 33.5 sen today.
Similarly Visdynamics Holdings continued its losing streak at 27.5 sen as of 5pm, down 19.5 sen. Visdynamics were among three small-cap counters issued unusual market activity (UMA) queries by the exchange yesterday over sharp declines in share prices.
At 107 million shares changing hands, Visdynamics led the top actives today, followed by China Stationery Limited at 71.7 million shares in volume which saw its price decline by 2 sen to finish at 14 sen.
Another top active PDZ Holdings Bhd retreated half a sen to finish at 15 sen while Managepay Systems Berhad saw much activity at 56.4 million in traded volume to finish 15.2% lower at 30.5 sen per share.
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