KUALA LUMPUR (July 13): Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query to Genetec Technology Bhd regarding the recent surge in the price and volume of the company’s shares.
In one filing, the exchange asked the assembly line supplier to disclose any company development regarding the group’s business and affairs that was not previously announced, or any rumors, reports or other possible explanation regarding the unusual movement of its share price.
The meter has jumped since last month, gaining 394% since closing at RM 3.76 on June 1, 2021.
Today, the counter closed up RM 1.88 or 11% to RM 18.58, placing it among the top earners on the exchange, with some 2.3 million shares traded. Its market capitalization was RM 937.1 million.
The recent surge in its share price follows a CGS-CIMB analyst report dated June 28, which underscored Genetec’s confidence in its ability to benefit from growing global demand for electric vehicles (EVs).
The research house said the company was one of several Bursa Malaysia-listed companies exposed to the electric vehicle and battery sector, which accounted for 93% of its RM205.6 million orders obtained since February this year. .
“Although Genetec recorded losses in FY21, it is convinced that the worst is over and expects better results in the future, supported by a strong order book and established relationships with global manufacturers of electric vehicles, âsaid CGS-CIMB.
“Genetec had net cash of RM27.5 million at the end of fiscal year 21,” the research house added.