Perak Corp Bhd Faces Unexplained Surge in Share Price
PETALING JAYA: The share price of Perak Corp Bhd has experienced a significant increase recently, reaching its highest level in seven years. Despite this sharp rise, the company has not provided any clear explanation for the surge.
In response to an unusual market activity (UMA) query from Bursa Malaysia Securities, Perak Corp stated that it is unaware of any corporate developments that could account for the recent fluctuations in its stock price and trading volume. The exchange regulator raised concerns after the stock rose as much as 20% to 89 sen on the previous day, marking the highest level since May 2018.
Over the past month, the stock has shown remarkable growth. It closed at 23.5 sen on September 30 and reached a high of 95 sen earlier in the day, representing a surge of nearly 305%. This sudden increase has left many investors and analysts puzzled about the underlying factors driving the stock's performance.
The company’s board acknowledged that it is not aware of any rumors or reports related to its business or the affairs of its subsidiaries that could explain the current trading activity. However, Perak Corp mentioned that it is currently engaging in discussions with various parties regarding potential ventures and business opportunities.
Despite these ongoing talks, none of the preliminary discussions have led to any formal agreements. Additionally, the board has not yet deliberated or approved any decisions that would require immediate public disclosure.
Perak Corp also noted that it had previously submitted a proposed regularisation plan for Bursa Securities’ approval, along with other corporate proposals. However, the regulator has not yet made a decision on whether to approve or reject the regularisation plan submitted in May of this year.
The company was classified under Practice Note 17 (PN17) in 2020 following the closure of its Movie Animation Park Studios theme park in Ipoh and a default on its term loan. This classification typically indicates financial distress and regulatory scrutiny.
With a 52.9% stake held by Perbadanan Kemajuan Negeri Perak, the state economic development corporation, Perak Corp remains a key player in the local market. The stock closed 5.9% or five sen higher at 90 sen, resulting in a market capitalisation of RM90 million.
Key Points to Consider
- Unexplained Growth: The sharp increase in share price has left both the company and investors without a clear understanding of the reasons behind the surge.
- Ongoing Discussions: Perak Corp is engaged in preliminary talks with various parties but has not reached any definitive agreements.
- Regulatory Status: The company remains under PN17 classification due to past financial challenges, which may impact investor confidence.
- Market Capitalisation: The recent rise in stock price has significantly increased the company's market value, reaching RM90 million.
As the market continues to monitor the situation, further updates from Perak Corp will be crucial in providing clarity on the factors contributing to the recent stock performance. Investors are advised to stay informed and cautious as the company navigates through these developments.