CI Holdings not aware of reason behind sharp rise in share price, volume

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KUALA LUMPUR (Mar 3): CI Holdings Bhd said it is not aware of any rumour or report concerning the business and affairs of the company that may account for the unusual sharp rise in its share price and volume over the past one week.  

However, in its reply to Bursa Malaysia's unsual market activity (UMA) query this evening, CI Holdings (fundamental: 1.85; valuation: 0.3) said it is in the midst of negotiating with several parties regarding a possible corporate exercise involving the group.  

“As the negotiation is still at its preliminary stage and still in flux, we believe that it would be highly irresponsible of us to make any premature and incomplete announcement to Bursa Securities, regarding the aforesaid possible Corporate Exercise at this moment,” said CI Holdings.

Besides that, it said it was not aware of any other possible explanation that may account for its stocks’ unusual market activity.

CI Holdings is a manufacturer of edible oils, taps and sanitary ware.

In a standard query earlier, Bursa urged the company to disclose as to whether there was any unannounced corporate activity, rumour or report that could have prompted the anomalous share-trade pattern.

CI Holdings began to spike noticeably last Thursday (Feb 26), when it closed 24 sen or 21.05% higher at RM1.38.

Today, the counter closed at RM1.85, down 4 sen or 2.12% — giving it a market capitalisation of RM306.18 million — after touching an intra-day high of RM2.10.

(Notes: 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.)