Bursa queries Tek Seng over unusual rise in share price

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KUALA LUMPUR (Sept 11): Tek Seng Holdings Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia today, over the recent rally in its share price.

The stock has more-than-doubled from 40 sen in the beginning of August to close at 84.5 sen today, giving it a market capitalisation of RM198 million.

In the filing, Tek Seng said it was ordered by Bursa to disclose any corporate development relating to the group’s business and affairs, that may account for the unusual trading activity.

Bursa also queried if there is any rumour or report on the firm, which is principally involved in the manufacturing and trading of polyvinyl chloride related products.

Nevertheless, in a separate filing to Bursa Malaysia on the same day, Tek Seng said its 86.1% owned-subsidiary, TS Solartech Sdn Bhd, has today entered into a memorandum of understanding (MoU) with Taiwan-based listed outfit, Solartech Energy Corp (SEC), for the purpose of a ‘strategic alliance’.

Under the MoU, SEC has proposed to invest RM100 million in TS Solartech. SEC is principally engaged in the manufacturing of solar cells in Taiwan. It provides multi-crystalline and mono-crystalline solar cells, solar modules and systems.

Tek Seng closed 6 sen or 7.6% higher at 84.5 sen, with some 29 million shares traded.