Hot Stock Datasonic share jumps 8% as firm reveals more details on share split

by **Cals** Mon 18 Nov 2013, 16:50

Hot Stock Datasonic share jumps 8% as firm reveals more details on share split

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 18 November 2013 16:13

KUALA LUMPUR (Nov 18): Shares of Datasonic Group Bhd jumped after the company released more details on its proposed share split that entails the subdivision of every one share into five units.

In a circular to shareholders today, the company said an EGM to approve the proposal to subdivide its capital of RM67,500,000 comprising 135,000,000 Datasonic shares into 675,000,000 shares will take place on Dec 10.

Listing of the sub-divided shares is targeted to take place on Dec 27.

At 3.46 pm, Datasonic’s share rose 58 sen or 8% to RM8.13 after hitting a high of RM8.15, on trades of 966,700 shares.

“People trade mainly because of the share split proposal. People expect the share price to shoot up after the share split, although there is no change in fundamentals to the company.

“This stock can be easily pushed up because there is a lack of liquidity. Its share price can jump just on thin trades,” said a senior dealer.

According to Bursa filings, the net asset per share of the company stood at RM1.58 as at June-30 2013.

Indeed, Datasonic’s share price has multiplied four times since May. It rose from RM2 in May just before the company announced a bonus issue.

It then rose on stronger second quarter results and the payment of 7.5 sen interim dividend when the company released its results in August.

Most recently, it was the announcement of a share split on Oct 18.