Bursa has issued an unusual market activity query to HeiTech Padu over the sharp rise of its share price

by SULHI KHALID / pic by TMR FILE

TECH companies continue to be actively traded on Bursa Malaysia despite the sombre outlook analysts have for the sector feeling the blowback from the US-China trade tensions.

SMTrack Bhd, an information technology company involved in radio frequency identification (RFID) solutions products with ambitions to move into the aviation business, saw its shares underwent a sharp correction yesterday.

Its share price fell 5.5 sen or 22.9% lower to 18.5 sen on heavy volumes, which technical chartist put the counter on correction mode.

“Its a pump up and dump action on the stock. The stock has risen from about nine sen in April to a high of 25 sen last week on news of its plan to move into the aviation business. The stock can go lower despite finding support at the 17.5 sen level,” a chartist of a local brokerage said.

He warned that investors need to know the penny stocks limit is 30 sen per day.

SMTrack, in April, inked an agreement with Dexma Express Sdn Bhd to explore investment opportunities in Citilink’s upcoming aviation operation in Malaysia.

Dexma Express is a Penang-based company specialising in sales of carriage by air services for both passengers and cargo.

SMTrack recently announced it will acquire a 60% stake in Dexma Express’ operation for a deal worth RM2.8 million.

For its third quarter ended April 30, 2019 (3Q19) — the company reported a net profit of RM74,000 compared to a net loss of RM420,000 in the corresponding period last year, on lower sales and expenses. It reported a 13% increase in revenue to RM425,000 for the period from RM375,000 in 3Q18.

HeiTech Padu Bhd, meanwhile, continued its rally by closing two sen higher to RM1.28, valuing the company at RM133 million.

Last Friday, Bursa Malaysia has issued an unusual market activity query to the group over the sharp rise of the company’s share price. In an exchange filing yesterday, the company noted it was not aware of any rumours or reports to justify the recent sharp rise in its share price.

HeiTech Padu rose 30 sen to RM1.26, a five-year high last Friday, with 23 million shares traded on the day.

It is reported to be among the front-runners to bid for a revised new multi billion Sistem Kawalan Imigresen Nasional (SKIN) project.

Last year, the government has decided to scrap the RM3.5 billion SKIN project, which was meant to replace the existing Malaysian Immigration System built in the 90s.

Iris Corp Bhd and Scicom (MSC) Bhd were the other top contenders bidding for the revised project.

The request for proposal (RFP) for a new immigration and border control system has been called, aimed at replacing the SKIN project approved by the previous administration.

The Home Ministry has issued the RFP last month, calling for the need to develop a new system that is more comprehensive, efficient, userfriendly and value-for-money to the government.

Scicom’s share price rose seven sen or 7.9% to 96 sen, while Iris rose one sen or 6.9% to 15.5 sen in active trade yesterday.

Green Packet Bhd rose 4.5 sen higher to 50.5 sen per share after its wholly owned unit, KiplePay Sdn Bhd, signed an agreement with Bank Islam Malaysia Bhd to provide electronic wallet services.

Green Packet shares rallied by 20% last week due in part to the rising value of its holding listed company, G3 Global Bhd.

G3 Global saw its share closed seven sen lower yesterday to RM2.03, valuing the company at RM849 million.