Hot Stocks Sumatec, PDZ, Marco rebound after meltdown, Globaltec steady

by **Cals** Thu 21 Aug 2014, 12:52

Hot Stocks Sumatec, PDZ, Marco rebound after meltdown, Globaltec steady

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Thursday, 21 August 2014 11:54

KUALA LUMPUR (Aug 21): Penny stocks Sumatec Resources Bhd, PDZ Holdings Bhd and Marco Holdings Bhd rebounded today following a meltdown late yesterday.

Globaltec Formation Bhd (Glotec), which had bucked the trend and avoided a sell down yesterday, remained steady on Thursday.

At 11.32 am today, Sumatec gained 4.5 sen or 10.2% to 48.5 sen on trades of some 211 million shares.

PDZ rose 2.5 sen or 8.5% to 32 sen, with some 137 million shares done.

Marco added 0.5 sen or 2.4% to 21.5 sen on volume of 71.7 million shares.

Glotec, however, remained flat at 12 sen on some 122 million shares done. It had earlier risen to a high of 13 sen.

A dealer told theedgemalaysia.com that the three sold-down counters were active on a technical rebound.

“Today, Sumatec, PDZ and Marco are upward on a technical rebound,” he told over the telephone.

“Just like yesterday, except that today the ‘big’ penny stocks like Sumatec and PDZ are up, thus it created a positive domino effect on the other penny stocks,” he added.

Meanwhile, another dealer opined that stock traders were returning to buy up the penny stocks, adding that today was ‘buying position’ for these three counters.

“We would not say it is a technical rebound, but we think investors are returning to buy trading activity,” he told theedgemalaysia.com.

Amid a trading frenzy on the local bourse that drove total volume to a record 7.67 billion shares yesterday, Sumatec and PDZ saw their share prices plunge 27.9% and 21.3% respectively.

They led the fall of penny stocks in a market that saw 758 decliners outnumbered 227 gainers with 245 counters unchanged.

Marco also dropped 2.5 sen or 10.6% to close at 21 sen yesterday, with 389 million shares traded.

The Edge Financial Daily today reported Sumatec CEO Chris Dalton as being unfazed about the sharp fall in its share price and attributed the sell-down yesterday to market volatility.

PDZ was deemed as ‘overheated’ by dealers, the daily added.