United U-Li Corp gets UMA query over sharp rise in share price, volume

United U-Li Corp gets UMA query over sharp rise in share price, volume
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KUALA LUMPUR (Dec 14): United U-Li Corp Bhd, whose share price surged 9.71% to a high of RM1.13 today — a level it has not seen since May 2018 — has received an unusual market activity (UMA) query from Bursa Malaysia.

The counter however gave up its gains as trading progressed and at 3pm, it was trading at 98 sen, down five sen or 4.85% compared to last Friday’s closing price of RM1.03.

Some 4.74 million shares were traded, far exceeding its 200-day average volume of 792,456 shares.

The stock has surged 151% since its recent low of 39 sen on Oct 23. Year to date, it has almost doubled from 49.5 sen.  

The group manufactures cable support systems, cable management systems, integrated ceiling systems, building materials and light fittings.

In its query, Bursa requested that United U-Li disclose any investment decision, corporate development, rumour or report concerning the business and affairs of the group, and any other possible reasons for the sharp increase in its share price and volume traded.

United U-Li returned to the black in the third quarter ended Sept 30, 2020 with a net profit of RM5.06 million, from a net loss of RM4.4 million in the preceding quarter, while revenue surged 197% to RM51.11 million from RM17.20 million. 

The group attributed the better earnings performance to the higher revenue and higher margins achieved on goods sold.

It added that in the preceding quarter, the group was affected by the movement control order

S Kanagaraju