Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly, on July 18 - 24, 2016.

BETWEEN July 6 and 12, a total of 469.19 million shares worth RM549.47 million changed hands off market in blocks of at least 350,000 shares each. Recall that it was a short three-day trading week over the period owing to the Hari Raya Aidilfitri holidays.

Notable transactions included the 50.15 million shares or 1.7% of Borneo Oil Bhd that changed hands in a mix of block, direct and crossed trades between July 8 and 12 for RM9.11 million. The transacted prices of 17 sen to 19 sen were within the prices fetched on the open market, which had risen about 13% to 27% from the previous month.

On July 11, Bursa Malaysia queried Borneo Oil for unusual market activity after the company saw trading volume jump by over 200% on July 8 and about 11% of its share base changing hands on July 8 and 11. The company said it was not aware of any possible reason for the high volume of trade except for its improved results for 1Q2016 ended April 30, which saw net profit surging to RM10.7 million from RM525,000 a year ago. Borneo Oil also pointed to the recent global rally in gold and gold mining stocks following Britain’s decision to leave the European Union as the company is involved in gold-mining activities.

Over at Eco World Development Group Bhd, 70.4 million shares or 2.5% of its share base changed hands in direct trades for RM88 million or RM1.25 apiece on July 11, just above its closing price of RM1.24 that day.

The largest collective trade by value was seen at Hap Seng Consolidated Bhd where 35 million shares or 1.4% equity changed hands in a single direct deal on July 12 for RM229.6 million. The transaction price of RM6.56 apiece was at a 14.7% to 14.9% discount to the RM7.69 to RM7.71 apiece they fetched on the open market.

Hap Seng, which has sold some of its treasury shares in recent weeks, climbed to a five-year high of RM7.77 on July 13. At the time of writing, it most recently sold 3.83 million treasury shares for RM29.46 million or an average of RM7.70 apiece on July 13, reducing the shares held in treasury to 15 million shares or 0.6% its share base.

Meanwhile, 37.33 million or 4.3% of Reliance Pacific Bhd shares changed hands in a mix of block and direct deals on July 8 for RM8.4 million. The transacted price of 22.5 sen apiece was a steep 39% discount to the day’s closing price of 37 sen.

Filings show that the stake was sold by Reliance Pacific’s founder Datuk Gan Eng Kwong and CEO Datin Irene Tan to Mazmur Capital Sdn Bhd, a vehicle of Reliance Pacific executive director See Ah Sing. Mazmur Capital now holds a 28.9% direct stake in the loss-making tour company. In April, Datuk Md Wira Dani Abdul Daim, a son of former finance minister Tun Daim Zainuddin, emerged as the largest shareholder in Reliance Pacific.

July 12 also saw 15.32 million shares of Wah Seong Corp Bhd done at 69.5 sen each or RM10.64 million in total. On July 11, trading in Wah Seong shares was halted for an hour pursuant to a July 9 announcement that its subsidiary had won an award to provide pipe coating and storing services for the Nord Stream 2 project to pipe gas from North Russia to the German coast near Greifswald.

Three real estate investment trusts also saw significant off-market activity during the period in review. On July 11, some 42.07 million Al-Salam Real Estate Investment Trust units were traded in a block deal at RM44.59 million or RM1.06 per unit. Investors also traded 7.6 million Hektar Real Estate Investment Trust units worth RM11.47 million at RM1.51 per unit. There were also various off-market trades at Sunway Real Estate Investment Trust where 5.54 million units worth RM9.31 million were transacted at prices ranging from RM1.65 to RM1.70 on July 8 and 12. 

 

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