KUALA LUMPUR (Oct 16): MQ Technology Bhd has been asked by Bursa Malaysia to explain the reason behind the recent high trading volume of its shares.

In an unusual market activity (UMA) query today, Bursa asked MQ Technology if there was any corporate development, business negotiation rumour or report, or any other possible explanation that could account for the sharp rise in its volume.

MQ Technology, which fell as much as 1.5 sen or 10.71% to 12.5 sen, before closing 3.57% or 0.5 sen lower to 13.5 sen, saw its trading volume surged to 103.6 million shares today, bringing its capitalisation of RM37.7 million.

Year to date, the counter has gained 28.57%.

MQ Technology had on July 31, proposed to undertake a private placement of up to 25.36 million new ordinary shares of 10 sen each, representing 10% of the issued and paid-up capital of MQ Technology, to raise approximately RM2.54 million.

The company had on Sept 17, fixed the issue price in which is at the par value of MQ Technology shares, and is at a discount of RM0.0039 or approximately 3.75% to the five (5)-day volume weighted average market price of MQ Technology shares, up to and including Sept 15, 2015 of 10.39 sen.

“The MQ Group intends to utilise up to RM2.42 million of the proceeds for its day-to-day operations,” it said in an announcement dated Aug 3.

(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.)