KUALA LUMPUR (March 4): MPHB Capital Bhd, whose share price hit limit up today after jumping 29.63%, has received an unusual market activity (UMA) query from Bursa Malaysia over the sharp rise in the company’s share price.

At the closing bell today, the stock was up 32 sen at RM1.40, giving the company a market capitalisation of RM1 billion, after some 3.72 million shares were traded.

The stock was the fifth top gainer of the day on Bursa.

“We draw your attention to the sharp rise in price and volume of your Company’s shares recently,” said Bursa in an exchange filing today.

In its query, the stock exchange regulator asked the company if there were any corporate developments relating to its business that had not been announced.

The regulator also asked if the company is aware of any rumour, report or possible explanation concerning the business and affairs of the group that may account for the trading activity.

“[And] whether you are in compliance with the Bursa Securities LR (Listing Requirements), in particular Paragraph 9.03 of the Bursa securities LR on immediate disclosure obligations,” asked Bursa.

Last August, MPHB Capital announced that it was seeking Bank Negara Malaysia's approval to start talks with Generali Asia on the divestment of its 51% stake in MPI Generali. In late September, it said it had been informed by BNM that the central bank had no objection to the talks.

Generali Asia is a subsidiary of Italian Generali Group, which acquired a 49% stake in MPI Generali from MPHB Capital in May 2015. Notably, Generali Asia's put option on its 49% interest in MPI will come into play in May this year, five years after the completion of its stake acquisition.

According to MPI's website, the local insurer's core business is underwriting of general insurance business offering innovative insurance products and services which can be customised to the specified needs of individual and corporate customers.