Chee Wah dips 17% on bearish broader market sentiment

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KUALA LUMPUR (Dec 8): Stationery maker Chee Wah Corp Bhd declined as much as eight sen or 17% to 40 sen on the back of bearish broader market sentiment.

Chee Wah fell despite announcing it was acquiring a piece of leasehold industrial land with an existing factory and warehouse in Seberang Prai, Penang for RM6.5 million. The seller is Maica Laminates Sdn Bhd.

At 12:30pm, Chee Wah shares reduced losses to settle at 41 sen with 100,000 shares changing hands.

The FBM KLCI fell 7.66 points or 0.4%. Across Bursa Malaysia, the bearish market sentiment had resulted in 486 decliners versus 188 gainers.

Last Friday, Chee Wah Chee Wah said the existing warehouse on the Seberang Prai land would replace the company's currently-rented warehouse.

Chee Wah said “the savings in rental will be channelled to partially pay Chee Wah’s bank borrowings to be obtained for financing the proposed acquisition."