Prestariang Bhd (-ve)
TRADING of shares in Prestariang Bhd (fundamental: 0.15/3, valuation: 0/3) triggered our momentum algorithm yesterday for the third time this year. The stock went up one sen or 1.94% higher at 52.5 sen, with 47.68 million shares done, compared with its 200-day average volume of 16.34 million shares.
The High Court recently ruled that the company’s legal action against the government of Malaysia (GoM) for contract termination does not warrant a trial as it is not in dispute.
It dismissed the GoM’s application to convert an originating summons into a writ and awarded costs to the group’s unit, Prestariang Skin Sdn Bhd. The judge held, among others, that the only issue for the court’s determination is the amount to be paid by the GoM as a consequence of the expropriation.
Prestariang Skin’s legal action, seeking RM733 million in damages, stems from the GoM’s termination in January of a RM3.5 billion National Immigration Control System or SKIN project awarded in 2017.