KUALA LUMPUR (May 6): Cahya Mata Sarawak Bhd (CMS) saw its trading volume surge to a two-month high amid a selloff that helped to drive the counter’s price down by a third year-to-date after the group suspended its group chief financial officer (CFO) to investigate allegations of financial mismanagement.

As at 11.06am, the diversified group dropped 18.23% or 37 sen to RM1.66, giving the group a market capitalisation of RM1.78 billion. Trading volume surged to a two-month high of 38.61 million shares, exceeding its 200-day average volume of 3.86 million.

The stock had slumped 32.2% from RM2.45 on Feb 24.

Yesterday, the group announced the suspension of its group CFO Syed Hizam Alsagoff for 30 days with immediate effect.

On April 22, CMS deputy group chairman Datuk Seri Mahmud Abu Bekir Taib said he is seeking leave of absence from all his positions in the group, as the group launched an investigation into allegations of conflict of interest involving him and former CMS chief information officer Karl Vink @ Khalid Abdullah.

CMS had reported to the authorities the allegations of conflict of interest involving Mahmud Abu Bekir and Karl Vink.

The allegations were received through the group’s whistleblower channel.