Hot Stock Datasonic at all-time high since 2012 listing

by **Cals** Tue 18 Feb 2014, 17:41

Hot Stock Datasonic at all-time high since 2012 listing

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 18 February 2014 12:56

KUALA LUMPUR (Feb 18): Datasonic Group Bhd rose to its all-time high since the electronic-identification specialist's listing on Bursa Malaysia almost 18 months ago.

The stock rose as much as 27 sen or 9% to RM3.44, its highest intraday price since Datasonic's listing on September 3, 2012. The stock reduced gains to RM3.24 at 12.30pm with some 13 million shares done.

Kenanga Investment Bank Bhd wrote in a note today that Datasonic share price's resistance was seen between RM3.17 and RM3.38. The immediate support was seen at RM2.96.

RHB Research Institute Sdn Bhd analyst Kong Heng Siong wrote in a note that Dataasonic shares had risen in recent days. This was in anticipation that the firm would gain from the Malaysian government's move to make the migration to the new national identity card compulsory.

Hence, RHB has upgraded its fair value for Dataasonic shares to RM3.36 from RM2.58. The upgrade comes with an unchanged "buy" call for the stock. Kong said Datasonic was expected to announce its fourth quarter and full-year results this February 28.

Today, the rise in Datasonic's share price has invited regulators' query. Bursa Malaysia has issued an unusual market activity query on recent rise in the stock's price.

Bursa wants Datasonic to update investors immediately on any business development which may have led to the rise in the latter's stock price.

According to Datasonic's statements to the exchange, the company was listed on Bursa Malaysia's Main Market at an issue price of RM2 a share.

Datasonic has subsequently undertaken a share-split exercise. This involved the division of of one share with a par value of 50 sen each into five units of 10 sen each.

Bloomberg data showed that the stock's market price was adjusted to 27 sen each upon completion of the exercise.