Perduren share price surges 30%, hits limit up

PETALING JAYA: Perduren (M) Bhd shares hit the 30%-limit-up level yesterday despite the absence of new developments in its business operations.
The share price rose 30 sen or 30%, closing at RM1.30. The spike however was on thin volume with only 73,300 shares traded in the property investment firm.
Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the spike in Perduren could be due to buying by institutional shareholders, including foreign funds.
"Due to lower liquidity, it (the buying) can boost the share price significantly," he added.
Pong however asked investors to exercise caution when trading in small caps, explaining that the decline can be as huge as the rise when the funds start selling. He added that while some of the small caps are making good profits, their share prices have more than accounted for that.
Perduren posted a net profit of RM6.77 million for the financial year ended March 31, 2014, a huge jump of 184.29% against RM2.38 million in the previous corresponding period.
Based on yesterday's closing price of RM1.30, Perduren's price-to-earnings ratio (PER) stood at about 26 times.
A filing with Bursa Malaysia revealed that the single largest shareholder of Perduren, Tan Sri Law Tien Seng holds a 71.24% stake in the company with the completion of his takeover exercise at RM1.10 a piece.