Hot Stock Bina Goodyear plunges 64.5% after Bursa rejected regularisation plan

by **Cals** Wed 06 Aug 2014, 01:08

Hot Stock Bina Goodyear plunges 64.5% after Bursa rejected regularisation plan

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 05 August 2014 12:03

KUALA LUMPUR (Aug 5): Troubled Bina Goodyear Bhd plunged as much as 64.5% following Bursa Malaysia’s rejection of the construction firm’s proposed regularisation plan.
The proposed regularisation plan was intended to lift Bina Goodyear out of its Practice Note (PN) 17 status.
At 11.39 am today, Bina Goodyear lost 8 sen or 51.6% to 7.5 sen on some 1.6 million shares done. The stock, which was among the top losers, had earlier fallen to a low of 5.5 sen.
A dealer told theedgemalaysia.com that such announcement is usually followed by panic selling of the stock.
“Bursa’s rejection is a bad sign. Investors tend to throw away the stock in fear of losing their investments,” the dealer said over the telephone.
The dealer opined the stock exchange should protect investor interest by setting a floor price to prevent further erosion in Bina Goodyear.
Another dealer commented that Bursa was ‘overly-conservative’ in rejecting Bina Goodyear’s proposed regularisation plan.
“Bursa is overly-conservative and not trusting Kenanga Investment Bank Bhd, Bina Goodyear’s principal adviser to restore market confidence,” said the dealer.
The dealer also expressed disappointment as the regulator did not protect investor interest.
Yesterday, Bina Goodyear in filing with Bursa said the regularisation plan was rejected as the group and its principal adviser Kenanga Investment Bank Bhd failed to satisfactorily address the regulator’s concerns about the proposed restructuring scheme to resolve all problems.
Consequently, the trading in its shares will be suspended with effect from August 12 this year.
Also, the company’s shares will be delisted on September 8, unless an appeal against the rejection of the regularisation plan and delisting is submitted to the regulator on or before September 13.
Bina Goodyear said its board of directors will deliberate on the next course of action and will make the relevant announcement in due course.