KUALA LUMPUR (Sept 14): Melewar Industrial Group Bhd (MIG) said the unusual market activity in the trading of its shares may be due to rally in the stock price of its subsidiary, Mycron Steel Bhd.

“At MIG company level, its 71.51% controlling share holdings in Mycron Steel has witnessed a sharp increase in market price and volume recently,” said MIG. “Whilst we cannot be certain that the aforementioned is the cause of MIG’s rise in share price and volume, it does offer a possible connection.”

Mycron Steel’s share price has more than doubled from 45 sen on Sept 1 this year, to 91 sen as the midday break today, giving the company a market value of RM257.12 million.

Replying to a query from Bursa Malaysia on the unusual market activity, MIG said another reason for the rise in its share price and volume could be its better financial performance in its fourth quarter ended June 30, 2016 (4QFY16).

MIG reported a net profit of RM8.13 million for the quarter, against a net loss of RM29.55 million for 4QFY15.

Another possible reason cited by MIG is the revaluation exercise undertaken by the group on its land, buildings, plant, machinery and electrical installation.

“The revaluation surplus arising from such revaluation exercise has also been approved by the board to be reflected in the fourth quarter unaudited results,” it added.

MIG’s share price has been rising drastically of late. As in the case of Mycron Steel, the uptrend began on Sept 1, when the counter was trading at 33 sen apiece.

The stock closed at 54 sen yesterday, a gain of 63.64% since Sept 1.

As at the midday break today, MIG was up another five sen or 8.33% to 59 sen, valuing it at RM131.93 million. It was the second most actively-traded counter, with 36.11 million shares exchanging hands.