GIIB shares extend losses amid heavy selling

KUALA LUMPUR: Shares in GIIB Holdings Bhd continued to slide on Friday, falling as much as 55.56 per cent in early trade, a day after a sharp decline prompted an unusual market activity (UMA) query from Bursa Malaysia Securities Bhd.

The rubber compounds manufacturer's shares fell to a morning low of 24 sen before recovering to 33 sen as at 9.53am, still down 21 sen or 38.89 per cent from Thursday's close of 54 sen.

The stock opened marginally higher at 54.5 sen before reversing course. It was the second most actively traded counter on Bursa Malaysia, with 46.18 million shares changing hands.

On Thursday, the stock plunged 23.94 per cent from 71 sen to 54 sen, wiping RM140.5 million off its market capitalisation, which fell to RM446.2 million from RM586.7 million.

The company had yet to respond to Bursa's query as at press time.

The sell-off marks a sharp reversal for GIIB, whose shares had surged more than ninefold from around eight sen earlier this year to a high of 74 sen on Oct 23.

At 33 sen, the stock was down 41 sen, or 55.41 per cent, from that peak. It remained more than 300 per cent higher year to date.

GIIB had previously received two UMA queries following unusual movements in its share price in late April.

In its earlier responses, the company cited its proposed diversification into the healthcare sector and said it was complying with Bursa Malaysia's listing requirements.

Businessman Datuk Ng Meng Kee is a substantial shareholder of GIIB, holding a 7.17 per cent direct stake and a 7.87 per cent indirect interest through Mega Fortris Global Pte Ltd and Mega Fortris Capital Ltd.

Ng is also the non-independent non-executive chairman of Mega Fortris Bhd, whose shares fell 20.58 per cent to RM2.74 on Thursday from RM3.45.

Mega Fortris extended its losses on Friday, falling as much as 19.34 per cent, or 53 sen, to RM2.21 after opening 9.49 per cent higher at RM3.