KUALA LUMPUR (March 31): A 20.22% jump in Parkson Holdings Bhd shares prompted Bursa Malaysia to issue an unusual market activity (UMA) query to Parkson today.
The stock rose as high as 18.5 sen to RM1.10, before paring gains and closing at RM1.08 at noon market close. A total of 18.99 million shares traded.
The volume of the shares shot up dramatically today, from 476,700 shares yesterday.
Bursa Malaysia has directed Parkson to furnish details of any corporate development, rumour, report, or any other possible explanation relating to the group’s business and affairs to account for the trading activity, including those in the stage of negotiation or discussion.
The company had recently made several share buy back announcements, since last Thursday.
The counter was barely traded, with the 65-week volume, averaging 1.19 million shares.
The stock has also been on a downward trend since June 30, 2011 from RM4.44, reaching a five-year low at March 11 at 89 sen. The stock’s 52-week average price is 87 sen to RM2.05.
In its latest quarterly results, Parkson slipped into the red, reporting a net loss of RM31.44 million or 2.88 sen per share in the second quarter of financial year June 30, 2016 (2QFY16), from a profit of RM110.61 million or 10.24 sen per share in the previous corresponding quarter.
The company attributed the loss to weak consumer sentiment in Malaysia, China and Vietnam, as well as decreasing margins and costs incurred by new business ventures during the ramp-up period in China.
Revenue however, increased 5.76% to RM1.04 million in 2QFY16, from RM981.68 million in the second quarter of financial year 2015 (2QFY15).
For the first half of financial year 2016 (1HFY16), net profit declined 75.65% to RM31.85 million, from RM130.82 million in the first of financial year 2015 (1HFY15); while revenue increased 7.65% to RM1.97 billion in 1HFY16, from RM1.83 billion in 1HFY15. - theedgemarkets.com
