GETS Global shares slide on Bursa’s caution

by S BIRRUNTHA / pic credit: ANNUAL REPORT

SHARES of GETS Global Bhd slumped as much as 29.97% and hit a low of RM2.78 yesterday morning after Bursa Malaysia Securities Bhd advised investors to exercise caution in the trading of its shares.

At the end of yesterday’s trading, the cash strapped bus operator’s stock closed 21.66% or 86 sen lower to RM3.11, valuing the company at RM391.86 million.

On Monday, Bursa Malaysia cautioned the market about GETS Global’s recent spike in activities and advised investors to make informed decisions in trading of GETS Global shares.

The regulator added that it would not hesitate to take appropriate regulatory action to ensure fair and orderly trading of the shares.

Previously, the group was issued with two unusual market activity (UMA) queries by Bursa Malaysia on Oct 20 and Nov 12.

It had replied to the queries saying that it was not aware of any corporate development or explanation that could give rise to the unusual trading activities in its shares.

GETS Global’s shares had been on the rise since September, after its announcement of venturing into the glove-making business with the emergence of a new substantial shareholder Teong Lian Aik.

In previous exchange filing, GETS Global said the group identified the gloves business as a new business segment to diversify into and expand its income stream, thereby reducing the group’s reliance on the existing bus operations.

GETS Global has been in a loss-making position since financial year 2016 due to the high operational costs for express bus services and tight competition within the bus industry.

For the fourth quarter ended June 30, 2020, GETS Global posted a net loss of 292% to RM15.29 million, while its revenue plunged 68% to RM4.3 million.