KUALA LUMPUR (Sept 1): Paragon Union Bhd, whose share price surged 39% in two trading days, has been slapped with an unusual market activity (UMA) query by Bursa Malaysia.

The loss-making carpet maker emerged as one of the top gainers in the local bourse today and hit a limit of RM1.93 before it pared its gain towards the closing bell to end 38 sen higher at RM1.87.

Trading volume was at 1.33 million shares.

Since the beginning of the year, the stock has risen nearly 188% from mere 65 sen in early January.

This is the second time the group has been issued with the UMA query. The first UMA query this year was in February.

In a stock exchange filing, Bursa has asked the company to reveal any corporate development, rumour or report concerning the business and affairs of the group, and any other possible reasons for the sharp increases in its share price and volume.

The regulator also queried whether there is any rumour or report concerning the business and affairs of the Group that may account for the trading activity.

Paragon Union is mainly involved in the manufacturing and distribution of carpets. Its product portfolio includes commercial carpets, rugs, automotive components and noise, vibration and harshness (NVH) components.

For the financial year end Dec 31, 2020 (FY20), the group reported a net loss of RM5.6 million from a net profit of RM2.81 million in FY19. Annual revenue declined to RM39.45 million against RM56.38 million registered in FY19.