KUALA LUMPUR (April 7): Bursa Malaysia’s most-active stock Lambo Group Bhd's share trade volume extended its surge in morning trades today after the company said yesterday it plans to venture into the food delivery business as it sees potential growth in the market segment due to the Covid-19 pandemic.
At 11:14am today, Lambo Group saw some 256 million shares traded. Its share price rose 0.5 sen or 50% to 1.5 sen for a market value of RM31.5 million.
Yesterday, its trade volume jumped to about 225 million shares from around 75 million units on Friday (April 3).
In separate Bursa Malaysia filings, Lambo Group said its wholly-owned subsidiary Lambomove Sdn Bhd has entered into two memorandums of understanding (MoUs), one each with GEM Live Sdn Bhd and Marquee International Sdn Bhd.
"The MoU signed (with GEM) expresses intentions of both parties (Lambomove and GEM) to work together towards the materialisation of a business contract which will involve GEM appointing Lambomove as its food delivery service provider to customers.
"The MoU signed (with Marquee) expresses intentions of both parties (Lambomove and Marquee) to work together towards the materialisation of a business contract which will involve Marquee appointing Lambomove as its food delivery service provider to customers for LAVO, a restaurant operated by Marquee,” Lambo Group said.
Lambo Group said that following the award of a local logistic licence by the Malaysian Communications and Multimedia Commission as well as the agreements with two renowned forwarders, namely FMX (M) Sdn Bhd and ABX Express (M) Sdn Bhd, the directors of Lambo Group believe that a partnership with GEM and Marquee will allow Lambo Group to venture into food delivery as the group sees a potential market due to the Covid-19 pandemic.