KUALA LUMPUR (Nov 3): Bursa Malaysia has queried Hibiscus Petroleum Bhd on the sharp drop in its share price today.
Hibiscus fell as much as 26 sen or 50% to 25.5 sen. At 12:30pm, the stock pared losses at 32.5 sen for a market capitalisation of RM318.8 million.
Hibiscus saw some 182 million shares transacted. The stock had declined 62% this year, versus the FBM KLCI's 5% drop.
Exchange regulator Bursa told Hibiscus : "We draw your attention to the sudden sharp fall in price of your company’s shares."
Hibiscus had not responded to Bursa's query at the time of writing.
Fund managers told theedgemarkets.com that there were margin calls on Hibiscus shares. Margin calls happen when stock broking firms sell shares in their clients' accounts to recover the money loaned to them to buy shares.
(Note: 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.)