Share price rise likely due to revision: Southern Acids

PETALING JAYA: Southern Acids (M) Bhd believes the spike in its share price and volume trading recently could be due to the target price for its shares upgraded by some of the research houses.
In a reply to Bursa Malaysia, the company said the revision of target price was made after the research house revised the estimate value of 260.82ha (644.49acres) oil palm estate land in Selangor after equating the land with property development in the nearby area.
However, Southern Acids stressed that it plans to continue to use the land for oil palm cultivation in the immediate future, and will make the necessary announcement to Bursa Malaysia of any material information in compliance with the listing requirements.
Last Friday, Bursa Malaysia issued an unusual market activity query on Southern Acids, questioning any corporate developments that may have contributed to the rise in price and volume of its shares recently.
Its share price went down 25 sen or 4.4% to close at RM5.38 yesterday, but year-to-date, it has risen 89.4%.