By Chan Quan Min
Three small-cap stocks have drawn the ire of Bursa Malaysia after going limit-down yesterday, as investor sentiment on small-cap stocks turned sour this week after close to a three-month rally in the FBM Small Cap Index.
MNC Wireless Bhd, Industronics Bhd and Visdynamics Holdings Bhd were slapped with Unusual Market Activity (UMA) queries by the stock exchange yesterday evening after shares in the three ACE Market companies plunged between 40% to 60%.
Of the three, only Visdynamics has replied to the stock exchange as of midday today claiming they were “not aware” of any reasons that would have contributed to the UMA.
At yesterday’s close of trading, MNC Wireless was high on the list of top losers, with investors having sold down the stock 23 sen or 60%. Industronics and Visdynamics saw similar, albeit less dramatic, losses of about 40% of their share value.
MNC Wireless describes itself as a mobile and Internet media company services such as mobile marketing, mobile billing and mobile app development.
In the red since 2006, the company is in part owned (indirectly) by ad-man Vincent Lee Fook Long and chaired by Abdul Kadir Sheikh Fadzir, a former Information Minister.
Last August, MNC Wireless was one-third of its equity value wiped out when company directors sold down their shareholdings.
The second of three UMA’s yesterday, Industronics, an electronics company, caused at least one other counter to chart a plunge purportedly due to loss of confidence.
Industronics announced yesterday it was selling shares in Solutions Engineering Holdings Bhd worth almost 3% of the company for a cash consideration of RM694,650 just as shares in both companies crashed.
The third company, Visdynamics, specialises in the design and assembly of back-end semiconductor equipment. In early trade today, the company’s share price has plunged further, to almost a third of last week’s closing price.
Another small-cap stock that has seen its share price halved this week is Stone Master Corporation Bhd.
The FBM Small Cap Index turned for a worse after hitting a high last week following a three-month rally. In early trade today the Index is down 1.2%.
You must be logged in to post a comment.