Sanichi Technology Bhd (-ve)
TRADING of shares in Sanichi Technology Bhd (fundamental: 0.6/3, valuation: 0.9/3) triggered our proprietary momentum algorithm for the fourth time this month. The counter closed one sen or 6.25% higher at 17 sen yesterday.
The stock saw a total of 33.87 million shares change hands, versus a 200-day average trading volume of 2.19 million shares.
Sanichi last week proposed a renounceable rights issue of up to 1.01 billion new shares, at an issue price of 10 sen per rights share, together with 506.14 million free detachable warrants, on the basis of two rights shares with one free detachable warrant for every existing share.
The group said the rights issue with warrants would enable the company to raise funds for its property development activities as well as working capital.