This article first appeared in The Edge Malaysia Weekly, on May 30 - June 5, 2016.

BETWEEN May 18 and 24, Bursa Malaysia saw 805.736 million shares worth RM534.905 million change hands in blocks of at least 450,000 shares each.

China Automobile Parts Holdings Bhd (CAP) saw a whopping 185.374 million shares traded off market. At 5 sen apiece, the shares traded are worth RM9.269 million and make up 13.61% of the company’s share capital. Most of the trades took place on May 24, with CAP’s shares closing at 5.5 sen apiece.

Note that CAP’s share price has fallen almost 80% over the past one year, on expectations of softer earnings. Interestingly, it is trading at a substantial discount to its net asset per share of 47.7 sen per share, of which 31.6 sen consists of cash. However, 32.6% of the group’s assets are in trade and other receivables.

Meanwhile, labelling manufacturer Komarkcorp Bhd saw 12.16 million shares worth RM6.08 million traded off market on May 19. This represents a 9.76% stake. The trades took place at 50 sen apiece, substantially higher than the company’s closing price of 46.5 sen.

According to company filings, group CEO Koh Hong Muan acquired the 12.16 million shares, increasing his stake to 31.37%. At the same time, Koh’s son, Koh Chie Jooi, also saw his deemed interest in the company increase by the same quantum.

The filings also show that Datuk Tan Kwe Hee disposed of 9.54 million shares at 50 sen apiece on May 19 in an off-market deal, ceasing to be a substantial shareholder. It is not clear who disposed of the balance of the shares. Tan is joint group CEO of Komarkcorp.

It is interesting to note that one week earlier, executive director Lim Pei Tiam had disposed of 15.62 million shares at the same price in an off-market transaction with King Regal Investments Ltd, a Hong Kong-based company. It is not clear who the beneficiary owners of King Regal are.

Meanwhile, another notable off-market transaction involved 305 million Hubline Bhd shares, or a 2.845% stake in the company. Two blocks of shares crossed in direct off-market trades on May 20 at 1 sen a share. The break bulk shipping services provider’s shares have been hovering at 1 sen to 1.5 sen.

Seventy-five million of the shares were acquired by Billion Power Sdn Bhd from its chairman, Richard Wee Lianh Huat. Billion Power is 43%-controlled by Top Gold Capital Ltd and 57%-controlled by Ling Peck Yii, who is the sister of Dennis Ling, Hubline’s managing director.

At the same time, EKA Noodles Bhd saw 9.13 million shares worth RM1.083 million cross off market. This makes up a 2.92% stake in the company. The 19 transactions of less than 500,000 shares each were carried out at between 12.5 sen and 11.5 sen.

Last month, EKA Noodles received an unusual market activity query from Bursa Malaysia when its share price surged to 25 sen apiece in mid-April.

DiGi.Com Bhd also saw several sizeable off-market transactions that totalled 70.52 million shares worth RM315.48 million. The shares make up 0.91 % of the telco’s share capital. On May 20, 68.52 million shares were traded at RM4.47 apiece. The previous day, two million shares crossed at RM4.60.

AirAsia X Bhd saw 33.5 million of its shares traded, worth RM13.45 million. More than 70 blocks of less than 500,000 shares each changed hands at an average price of 40.2 sen apiece. AirAsia X’s share price rose to as high as 41 sen on May 17, up 127% since the beginning of the year, but eased to 38.5 sen last Wednesday. 

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