Takaso hits limit down

KUALA LUMPUR: Shares of Takaso Resources Bhd, a condom maker, tumbled by more than one third yesterday, its second sudden drop within the space of about four weeks.

The company, which also produces baby products, saw its shares on Bursa Malaysia decline 35.3 per cent or 12 sen, to close at 22 sen yesterday. On August 8, its shares fell 33.6 per cent to 46.5 sen.

Despite the sharp decline, the company is still traded about 4 per cent higher so far this year.

The decline yesterday has prompted an "Unusual Market Activity" query by Bursa Malaysia. Interestingly, the decline on August 8 was not queried.

In its reply to the Bursa query, Takaso said, after making enquiries with directors and major shareholders, it is not aware of any development, activities or any possible explanation for the unusual market activity.

The company is no stranger to such sharp drops. Since 2009, the company had experienced at least six times of single-day dips of above 30 per cent. In April 23 2009, its shares fell by 54.8 per cent or 17 sen to 14 sen.

Takaso, established more than 14 years ago, posted a net loss of RM878,000 for the third quarter ended April 30 2011.

"The decrease in revenue and profit before tax mainly arose from reduced sales to the Middle East due to its current crisis that lead to an unstable economy," said the company in its filing in June.

The company expects business to be tough due to unstable economic condition in some regions, as well as increasing competition that leads to margin erosion.