Business

Wednesday November 4, 2009

Lityan down sharply, queried over unusual market activity

By DANNY YAP


PETALING JAYA: Shares of Lityan Holding Bhd closed sharply lower yesterday after two days of soaring gains, tumbling 9.3% to RM2.45 in volatile trade, culminating in a halt in the trading of the stock in late session.

Lityan had hit a high of RM3.46 and a low of RM2.30 before trading of its shares was stopped at 4.34pm. The counter will resume trade today. A total of 27.2 million shares changed hands yesterday.

Bursa Malaysia issued an “unusual market activity” query to the company yesteday, to which Lityan replied that it was not aware of any of corporate developments or rumours that could significantly impact its share price.

“However, the board is of the view that the market or public has full confidence in the company (Lityan) upon the implementation of the restructuring scheme,” it said in a reply to the exchange.

Lityan also said the recent interest in its shares might be due to the fact that Lityan was now a 65% subsidiary of Lembaga Tabung Haji, making it a government-linked company, besides being one of the three listed subsidiaries of LTH.

A local analyst said the volatility in Lityan’s share price was driven by both positive and negative sentiments.

“I guess some investors are still bullish on Lityan shares rising further, while others are cashing out,” he said, adding that punters saw the stock as good “fishing.”

Lityan, formerly a PN17 company, was relisted following a restructuring exercise that enabled the system integration and IT solutions provider to be revived with a cash pile of RM40mil and a gross tender book of about RM180mil over the next two years.

The counter was relisted on Oct 30 at a reference price of RM1.

Lityan’s management had also expressed keen interest in partnering China’s Huawei to bid for part of Telekom Malaysia Bhd’s RM11.3bil high speed broadband project.


LITYAN : [Stock Watch] [News]


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