Hot Stock Sanichi soars 29% to intraday high

by **Cals** Thu 28 Aug 2014, 18:23

Hot Stock Sanichi soars 29% to intraday high

Business & Markets 2014

Written by Chen Shaua Fui of theedgemalaysia.com

Thursday, 28 August 2014 13:23

KUALA LUMPUR (Aug 28): Sanichi Technology Bhd rose as much as three sen or 29% to the stock's intraday high at afternoon break. At 12.30pm, shares of the plastic injection mould manufacturer settled at 13.5 sen.

Sanichi, which was the most-active counter on Bursa Malaysia, saw some 112 million shares changed hands.

According to a remisier, the counter has been actively traded recently, probably due anticipation that Sanichi rights shares would start trading this Tuesday (Sept 02).

“The share price has gone up maybe because of the rights issue or maybe some players played up the share price," SJ Securities remisier Goh Kay Chong told theedgemalaysia.com over telephone.

Sanichi's proposed rights issue involving 644.89 million new shares comes with 429.93 million free warrants. The exercise is undertaken on the basis of three rights shares together with two warrants for every two existing shares held.

The rise in Sanichi's share price came at a time when the group had exhibited stronger financials and announced the emergence of a new major shareholder.

Yesterday, Sanichi announced a RM423,000 net profit in the fourth quarter ended June 30, 2014, from a net loss of RM2.14 million a year earlier. Cumulative full-year profit increased to RM2.25 million, from RM906,000, the firm told Bursa Malaysia.

In a separate statement to the exchange, Sanichi said Pelaburan Mara Bhd has emerged as a major shareholder in Sanichi, with a 5.17% stake.

Pelaburan Mara had acquired the stake comprising 18 million Sanichi shares on the open market last Tuesday (August 26), according to Sanichi.