Lee Swee Kiat MD says no 'major announcements' after shares up 13%

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KUALA LUMPUR (July 27): Lee Swee Kiat Group Bhd is not aware of reasons behind the mattress manufacturer's share price rise in active trade today, according to managing director Eric Lee.

Lee said Lee Swee Kiat (fundamental: 1.7; valuation: 1.1), which rose as much as 13% today, did not plan to make major corporate announcements in the near term.

“We do not have any major announcements to be announced in near term,” Lee told theedgemarkets.com.

Shares in Lee Swee Kiat rose as much as 4.5 sen to 38 sen. At 3.30pm, the stock pared gains to trade at 36.5 sen with some 42 million shares transacted.

The stock, which is the sixth most-active counter on Bursa Malaysia, changed hands at 35.5 sen at 3.54pm with some 44 million units done.

Alliance Investment Bank remisier Raymond Foo said Lee Swee Kiat's share price rise was mainly due to penny-stock rotation activities.

“Penny stocks rotation activities mean syndicates will take turns to push up the share price of penny stocks to gain from it,” Foo told theedgemarkets.com.

(Note: 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.)