KUALA LUMPUR (March 30): YKGI Holdings Bhd, whose share price surged as much as 15% to hit a one year high of 30 sen today, said it is contemplating a proposal for a par value reduction.

YKGI, which was responding to an unusual market activity (UMA) query by Bursa Malaysia, said apart from that, there are no other new developments that may account for the UMA.

YKGI is involved in the manufacture and sale of galvanized and coated steel products. It has been in the red for the past seven consecutive quarters, since the second quarter of the ended June 30, 2014 (2QFY14).

Annual net loss for FY15 narrowed to RM16.5 million, from RM26.64 million in FY14, mainly due to cheaper raw materials.  

Revenue was 8.6% weaker at RM491.63 million, from RM537.69 million in FY14, due to weaker market and lower demand of its products.

Moving forward, YKGI expects the steel market conditions to remain challenging and competitive, with the weak ringgit.

Earlier today, YKGI was slapped with an UMA over the sudden surge in its share price. The regulator had asked the company to disclose any reason that could contributed to the sharp rise.

The stock ended the day down one sen or 3.57% at 27 sen, after 6.54 million shares exchanged hands, valuing it at RM74.89 million.  

The counter was typically barely traded. Its 65-days average trading volume stood at 96,966 shares.