Hot Stock PMB drops 8% on UMA query, profit-taking

by **Cals** Mon 18 Aug 2014, 22:21

Hot Stock PMB drops 8% on UMA query, profit-taking

Business & Markets 2014

Written by Meena Lakshana Ramadas of theedgemalaysia.com

Monday, 18 August 2014 12:08

KUALA LUMPUR (Aug 18): PMB Technology Bhd dropped 8.29% on profit-taking today following the unusual market activity (UMA) query by Bursa Malaysia last Friday.

Trading of shares in PMB was halted from 9.04am to 10.04am today.

The stock fell 15 sen to RM1.66 at 10.10am, today, on trades of 1.3 million units.

Bursa had last Friday requested aluminium product fabricator PMB to explain the rise in its share price. The stock rose 37 sen or 27.67% to close at RM1.81 that day.

PMB replied to Bursa Malaysia that it was not aware of any corporate development that could have led to the earlier share price increase.

A remisier told theedgemalaysia.com, the sharp rise in PMB's share price could be due to news reports that the company stood to gain from rising aluminium prices.

“When the euphoria sets in, there can be a lot of momentum generated for a stock as big buyers are buying.

“But when a query is issued, the market feels a bit jittery. So, there will be panic selling and you will see the price normalising,” he said.

Aluminium prices had risen 4.2% year-on-year to average US$2,168 (RM6,894.24) per tonne in the second quarter of this year.

PMB Technology recently announced a 16% increase in net profit to RM1.9 million for its second financial quarter ended June 30, 2014 versus RM1.63 million a year earlier.

This was due to higher contribution from its construction and fabrication division, which designs and fabricates aluminium curtain wall, cladding systems and system formwork.