KUALA LUMPUR (Sep 7): Practice Note 16 (PN16) company Tecnic Group Bhd has been issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd after the sudden sharp rise in its share price, which has led to speculations that the cash company is now close to identifying a main business.

Tecnic’s counter has been on the rise since Sept 1 — when it was trading at 79 sen — to RM1.20 at 4.37pm, signifying a 51.9% increase in share price. Compared to Friday's close, it has risen over 33% since.

Meanwhile, in the UMA query today, Bursa has requested Tecnic to disclose any corporate development, rumour or report concerning the business and affairs of the group, and any other possible reasons for the share price rally.

When contacted, Tecnic Group executive director Ivan Gan Poh San said he is not aware of any possible explanation on the sudden sharp rise in share price today.

“Based on the price movement today, we can only speculate that Tecnic has come close to identifying a main business which will release them from the Practice Note 16,” said Hong Leong Investment Bank Bhd dealer representative Frank Lin.

Recall that Tecnic completed the disposal of its entire business to sister company SKP Resources Bhd for RM200 million this year, and was officially listed as a PN16, or cash company under Bursa Malaysia’s listing requirements in July.

Following its PN16 status, Tecnic must regularise its condition by submitting a proposal to acquire a new core business to the Securities Commission Malaysia within 12 months from the date of the notice.

At its present share price of RM1.20 apiece, Tecnic has a market capitalisation of RM46.05 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)