Karex Bhd (+ve)
TRADING of shares in Karex Bhd (fundamental: 1.45/3, valuation: 0.8/3), the world’s largest condom manufacturer by capacity, triggered our momentum algorithm yesterday for the second time this month.
The counter slipped half a sen or 0.85% to close at 58 sen yesterday, after 30.64 million shares were traded, versus its 200-day average volume of 4.20 million shares.
Last week, the trading of Karex shares heated up amid rumours that it could be a takeover target of Top Glove Corp Sdn Bhd, which is said to be on the lookout for merger and acquisition opportunities for its condom manufacturing business.
But The Edge Financial Daily reported, quoting a Karex spokesperson, that the company was not aware of any such development, and that the Goh family, who controls the company, had no intention of divesting their business.
Top Glove managing director Datuk Lee Kim Meow similarly dismissed the rumours, saying he was not aware of any such thing.