Bursa Malaysia's "eyes" on counters in Monday's blood bath

PETALING JAYA: Bursa Malaysia Bhd is monitoring trades in four small cap counters, which saw its share price nose-dive on heavy selling pressure Monday, promising "relevant action" to ensure preservation of market integrity.
On Monday, two counters, namely, Industronics Bhd and Visdynamics Holdings Bhd, hit the 30 sen-limit-down level, while two others, Solution Engineering Holdings Bhd and MNC Wireless Bhd, shaved off 52.73% and 60.53% of its respective share prices on heavy selling.
"We have engaged with the listed companies to ensure timely and proper disclosure of information to the market. We are also assessing the trades in these counters including engaging with the brokers as to the reasons for such selling. We will continue to vigilantly monitor the trading and take any other relevant action to ensure preservation of market integrity," the regulator said in a statement issued late evening yesterday.
Industronics was down 30 sen (limit down) or 43.80% to 38.5 sen; Visdynamics down 30 sen (limit down) or 38.96% to 47 sen; MNC Wireless down 23 sen or 60.53% to 15 sen; Solution Engineering down 14.5 sen or 52.73% to 13 sen on Monday.
Bursa Malaysia added that Unusual Market Activity (UMA) is a disclosure tool to update the market and advise investors to take note of the company's reply to the UMA query when making their investment decision.
The regulator issued UMA queries to three counters on Monday. The queries to Industronics and Visdynamics were due to its stock prices hitting "limit down", while the query to MNC was due to the sharp fall in its share price with high volume.
Visdynamics' shares fell 7.27% to close at 25.5 sen; Industronics fell 6.15% to 30.5 sen; Solution Engineering fell 3.57% to 13.5 sen; MNC fell 5.71% to 16.5 sen yesterday.
In a separate filing to the stock exchange, Industronics Bhd said it had sold down a 4.31% stake in Solution Engineering Holdings Bhd on Tuesday through open market amid heavy selling pressure, incurring a loss of RM1.67 million.
Industronics said the disposal is in the best interest of the company as Solution Engineering's share price dropped dramatically in April. It said the move was to avoid further diminution in the investment.
Industronics also said that it was an effort to focus on its core business, relieving it from incurring further losses in its investment.
According to filings with Bursa Malaysia, Industronics' shareholding in Solution Engineering falls to 3.52% following the disposal. Industrionics ceases to be a substantial shareholder in Solution Engineering with the move.
At an average disposal price of 13.18 sen apiece, Industronics generated gross proceeds of RM1.05 million. However, as the stake sold carried an investment value of RM2.72 million, it incurred a loss of RM1.67 million for the disposal.
Industronics had on Monday also sold a 2.96% stake in Solution Engineering for RM694, 650 or 12.63 sen per share.