KUALA LUMPUR (Nov 21): Shares in Palette Multimedia Bhd extended their decline in active trade at mid-morning today and slumped 9.84% on the back of recent negative news flow.

At 10.22am, Palette fell 3 sen to 27.5 sen, with 23.69 million shares done.

Last week, shares in Palette slipped after MyEG Services Bhd (MyEG) group managing director (MD) Wong Thean Soon said he had disposed of holdings in Palette and will refrain from making any passive investments in listed equities in the future.

Meanwhile, TA Securities technical analyst Steven Soo told theedgemarkets.com yesterday that although momentum was bearish, it is still not oversold yet.

“If there is no buying support, then it will go down to 28 sen,” Soo said, adding that the stock may fall as low as 20 sen.

Since 2008, the stock had been hovering below 10 sen. However, it was on an upward trajectory since Aug 24, 2017 and had reached to a 15-year high of 49 sen on Nov 10. At the current level, Palette’s share price has seen a one-year return of 346.67%.

Of note is that the company recorded a second consecutive profitable quarter in its first quarter ended Aug 31, 2017 (1QFY18), as its recent Russian venture provided a huge boost in revenue.