Paragon Globe slapped with UMA query after hitting limit up

Paragon Globe slapped with UMA query after hitting limit up
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KUALA LUMPUR (March 31): Loss-making property developer Paragon Globe Bhd, whose share price hit limit up today, has received an unusual market activity (UMA) query from Bursa Malaysia over the sharp rise in the company’s share price.

The counter surged 29.5 sen or 32.96% to a more than two-year high of RM1.19. It was the second top gainer this morning. The counter saw 752,800 shares traded.

Bursa asked the group to disclose any corporate development, rumour or report concerning the business and affairs of the group, and any other possible reasons, for the sharp increase in its share price.

The exchange also asked the group if it is still in compliance with the Bursa Securities Listing Requirements, in particular Paragraph 9.03 on immediate disclosure obligations.

The group, which has been making losses since the third quarter ended Dec 31, 2019 (3QFY20), saw its net loss narrow to RM1.14 million in 3QFY21, from RM1.5 million a year ago, despite all of its segments, namely property development, construction and investment, remaining in the red.

Meanwhile, its quarterly revenue slumped 61.72% to RM4.52 million, from RM11.8 million a year ago, as no revenue was generated from the construction segment for the quarter under review.

For the cumulative nine months ended Dec 31, 2020 (9MFY21), the group slipped into a net loss of RM4.72 million from a net profit of RM3.7 million a year earlier. The group’s revenue for the period also plunged 83.12% to RM9.17 million from RM54.34 million a year earlier. 

Surin Murugiah