Ni Hsin plunges 20pct in early session after Bursa query

KUALA LUMPUR: Ni Hsin Group Bhd's share price extended its decline today after Bursa Malaysia issued an unusual market activity (UMA) query following sharp movements in its shares.

As at 11.36am, the counter had fallen 7.5 sen, or 20.27 per cent, to 29.5 sen, with 43.7 million shares traded. It initially opened higher at 38 sen, before falling to an intraday low of 15 sen.

The latest decline follows a 13 sen drop on Thursday, when the counter fell from 50 sen to 37 sen.

This represents a decline of 41 per cent from its 50 sen closing price on Wednesday.

The latest UMA query marks the second time Bursa Malaysia has sought clarification from Ni Hsin over unusual trading activity in recent months.

The company previously received a query on Sept 18, following a sharp rally that saw its share price climb from below 30 sen at the beginning of September to 37 sen on Sept 17.

The counter had been trading at around seven sen to eight sen until August before embarking on a significant rally and going as much as to 50.5 sen on Oct 27.

The rally coincided with several developments surrounding the group's expansion into the electric vehicle (EV) business.

On Sept 15, Ni Hsin announced that its wholly-owned subsidiary had secured RM2.76 million in purchase orders from Alam Flora Sdn Bhd for the supply of electric vehicles, including 105 electric motorcycles.

It also proposed diversifying its business to include EV-related activities, while its subsidiary subsequently handed over the first batch of 43 Surron electric off-road motorcycles to China's Chongqing Qiulong Technology Co Ltd in October.

On Oct 27, the group proposed a bonus issue of up to 312.65 million warrants on the basis of one warrant for every two existing shares held.