KUALA LUMPUR (July 9): Shares in Multi Sports Holdings Bhd, which were actively traded today, rose as much as 15.8% on bargain hunting.

At 3.48pm, the stock pared some gains and was traded at 10.5 sen, up one sen or 10.5%. Some 55.96 million shares changed hands between 9.5 sen and 11 sen, making it the third most actively traded counter across the bourse.

"Technically speaking, the stock has been oversold in the past. Hence it’s staging a rebound," a dealer told theedgemarkets.com over the phone.

Multi Sports (fundamental: 1.45; valuation: 2.1) was trading as high as 24.5 sen on August 15 last year and dipped to a low of 9.5 sen yesterday. Year-to-date, the stock has fallen 8.7%, compared with the 2.96% decline in the benchmark FBM KLCI.

The current price gives Multi Sports RM54.33 million in market capitalisation.

It should be noted that the China-based sports-shoe soles manufacturer had on June 16 proposed par value reduction and establishment of an employees' share option scheme (ESOS).

Under the proposal, the company planned to reduce its issued and paid-up share capital to US$12.94 million (RM49.13 million) from US$25.88 million (RM98.26 million), by cancelling the paid-up capital of the company by 2.5 US cents (9.49 sen) from 5 US cents (18.98 sen) apiece.

Apart from that, the company had also proposed to establish and implement the ESOS. The total issuance of shares should not exceed 15% of the company's total issued and paid-up share capital.

(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.)