This article first appeared in The Edge Financial Daily on November 21, 2018

Sanichi Technology Bhd (+ve)

SANICHI Technology Bhd (fundamental: 0.60/3, valuation 0.90/3), on our Stocks with Momentum list on Monday for the first time this year, closed 1.5 sen or 12.5% higher at 13.5 sen, after 18.36 million shares were done versus the counter’s 200-day average trading volume of 1.69 million shares.

Last Thursday, the group announced it needed more time to use the RM36 million proceeds raised from the previous renounceable rights issue with free warrants completed on July 29, 2016. The money, raised to acquire properties, was meant to be used within 24 months of the completion of the rights issue. The deadline for the utilisation of proceeds has been revised to Dec 31, 2019.

The company intends to acquire three grade A office units in GSH Plaza, Singapore and/or two adjoining 10-storey office blocks at the intersection of Jalan Ampang and/or Jalan Tun Razak, and an entire floor of office suites in Vertical II, Bangsar South in Kuala Lumpur. The company is currently assessing the commercial and financial feasibility of the properties.