KUALA LUMPUR (Nov 5): Timber manufacturing and trading group NWP Holdings Bhd has been issued an unusual market activity (UMA) query by Bursa Malaysia on the recent sharp rise in its share price and volume.
NWP's share price jumped as much as 16.7% or five sen on Friday to 35 sen, before paring some of its gains to trade at 32.5 sen at the time of writing, still up 8.3% or 2.5 sen from Thursday's close, after 152.89 million shares were traded.
The stock was the top most actively traded counter on Friday. At its current price, NWP has a market capitalisation of RM168.45 million.
Trading at just 24 sen on Nov 2, the stock has jumped more than 35% since.
On Oct 28, NWP announced it had inked a joint venture agreement to set up a new company to develop and commercialise a property technology platform for the use of real estate agencies, house buyers and property management companies.
It inked the agreement with two individuals, entrepreneur Eng Kin Hoong, whom it said has professional experience in IT solutions with a forte in, among others, the merging of technology with existing processes by introducing new products and services; and property agent Lee Wai Teng, who has extensive experience in real estate.
NWP's net loss more than doubled to RM2.79 million for its second quarter ended Aug 31, 2021 (2QFY22), from RM1.31 million a year ago, as revenue dropped 35% to RM1.47 million from RM2.26 million.
The losses were attributed to higher working capital for staffing and administrative expenses to support its diversification into new businesses for the company's future growth. From 2QFY22, NWP got involved in the trading of IT products and the selling and maintenance of motorbikes.
For its six months ended Aug 31, its cumulative net loss amounted to RM5.47 million while revenue stood at RM2.48 million.