Century Bond surges to one year high on corporate exercise speculation

-A +A

KUALA LUMPUR (July 3): Shares in Century Bond Bhd surged as much as 11 sen or 6.83% to its one year high of RM1.72 today, on speculations the company may undertake a corporate exercise.

At 10.41am, the stock narrowed down its gain to trade at RM1.70, still up nine sen or 5.6% with some 1.76 million shares done, making it the sixth largest gainer across the bourse.

With the current price, it has a market capitalisation of RM193.20 million.

The counter was traded at its all time high of RM1.96 on July 5, 2013 and dipped to a low of RM1.18 on Dec 17 last year, before regaining of its share price.

"Normally, the sudden surge in trading volume and share price of a company could be due to the possible corporate exercise such as bonus issue and special dividend," a dealer told theedgemarkets.com over the phone.

"The uptrend was began on July 1, which saw its share price surged to a high of RM1.71, from RM1.30," he added.

When contacted, the company's official however said they were not aware of any reason for the movement in its share price and trading volume.

"Investors may think our company's share was attractive and hence buying into it," he added.

On its earnings, Century Bond (fundamental: 2.05; valuation: 1.8) saw its net profit for the financial year 2015 (FY15) declined 11.2% to RM15.3 million, from RM17.23 million a year ago.

Revenue for the year also weakened to RM157.71 million, from RM170.08 million.

However, dividend for the year increased to 6 sen per share, from 4 sen per share in FY14.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)