Hot Stock Asia Bieonergy rises 17% on fund buying

by **Cals** Thu 05 Nov 2015, 18:38

Hot Stock

[size=28]Asia Bieonergy rises 17% on fund buying

By Sangeetha Amarthalingam / theedgemarkets.com | November 5, 2015 : 1:43 PM MYT

KUALA LUMPUR (Nov 5): Asia Bioenergy ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.60) Techology Bhd rose as much as one sen to seven sen on emerging institutional interest, after the company proposed to reduce its shares' par value.

Remisiers said institutional investors were buying business incubator Asia Bioenergy shares as retailer investors sold the stock. At 12:30pm, Asia Bioenergy settled at 6.5 sen for a market capitalisation of RM56.3 million.

The stock saw some 18 million shares done. “Retailers were selling and some bigger funds are coming in,” SJ Securities Sdn Bhd remisier Goh Kay Chong told theedgemarkets.com.

Last month, Asia Bioenergy proposed to reduce the par value of its shares to five sen each, from 10 sen.

The firm said its shares had been transacted below the current 10 sen par value. As such, the group was unable to raise funds via new shares at market prices below the par value.

Asia Bioenergy said the lower par value of five sen would provide the company with greater flexibility to raise funds and implement corporate proposals.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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