DRB-Hicom shares fall on trade error

KUALA LUMPUR: DRB-Hicom Bhd shares fell 14% or 33 sen to close at RM1.95 yesterday, making the counter the biggest loser on the local bourse in what was believed to be a trade error by a bank-backed brokerage.

Sources said the substantial decline in the stock’s price within 10 minutes prior to the close of trading happened when transaction instructions for three million DRB-Hicom shares by an institutional investor were keyed in wrongly by the brokerage. “It is believed that institutional investors had wanted to buy the shares (at the lower price of RM1.95). But the transaction was keyed in as a sell order instead,” the source told The Edge Financial Daily yesterday.

The error, which occurred at about 4.50pm, had seen the three million shares transacted at RM1.95 until the closing bell. Prior to this at 4.48pm, the stock had changed hands at RM2.28, unchanged for the day.

The shares rose to an intra-day high of RM2.30 before closing at RM1.95. Year to date, the stock is only up 0.52% this year.

The diversified conglomerate, which has a market capitalisation of RM3.77 billion, has interests in automotive manufacturing and distribution, property development and construction, among others. DRB-Hicom made news early this month when it acquired a controlling 32.21% stake in Pos Malaysia Bhd from Khazanah Nasional Bhd for RM622.8 million or RM3.60 a share. The transaction made it the single largest shareholder of Pos Malaysia.

DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil had said in a statement then that both DRB-Hicom and Pos Malaysia complemented each other strategically.

According to Khamil, DRB-Hicom will help grow Pos Malaysia’s courier, retail and logistics operations. At the same time, the acquirer will also be able to leverage on its associate’s distribution channel