Volumes, volatility rise driven by Scomi trades


VOLUMES of securities traded on Bursa Malaysia hit past the 10 billion mark yesterday as volatility and speculative traders saw active trading interest.

PN17 oil and gas (O&G) firm, Scomi Group Bhd’s shares and warrants were the most actively traded yesterday accounting for about 13.9% of total market volume as the stock became active in the second half of the day.

Scomi’s share price jumped 7.5 sen or 214% to close at 11 sen a share after hitting a low of 3.5 sen and high of 15 sen in intraday trade yesterday.

The cash-strapped O&G firm’s market capitalisation rose to RM120.33 million.

“The stock’s rise is likely due to a potential change in its PN17 status maybe through the entry of a white night. We need to wait and

see what the company announces,” said an analyst with a local brokerage.

Scomi is currently in the middle of formulating a regularisation plan to address its tight financial condition, it noted in an exchange filing dated March 1, 2021.

According to the note, Scomi has six months to submit its regularisation plan to the relevant regulators for approval.

A market observer said the regularisation plan may include corporate exercise such as a reverse takeover (RTO), which could alleviate the group’s tight financial condition.

“There has been market talk that the group is planning for RTO or some sort of corporate exercise that might be impacting the huge jump in its share price (yesterday),” he said.

According to Bursa Malaysia’s filings, Scomi’s non-independent and non-executive director Shah Hakim @ Shahzanim Zain, who stepped down as the group’s CEO in 2018, acquired one million Scomi’s shares at 3.5 sen on March 9 from the open market.

He later acquired another 366,500 shares at a similar price the next day. At present, he has a direct interest of 2.02% or 22.08 million shares in the group and an indirect or deemed interest of 8.11% or 88.73 million shares in Scomi.

Last year, the loss-making firm borrowed RM1 million from SBI Spectrum Sdn Bhd, a company linked to its CEO and ED, Sammy Tse Kwok Fai, for working capital requirements.

Another market analyst said the positive sentiment of the counter might be growing on the back of the political play in the anticipation of a snap election.

“We have noticed some Bumiputera contracts are having some decent run ups. Market players could be trying to tap along with the idea of election money or funding.

“Normally, this will result in some rally in government-linked stocks. There is not much out there now, hence the only thing that the market anticipates is just riding the theme out,” he said.

Another PN17 company, Barakah Offshore Petroleum Bhd, also saw active trade with a share price rising one sen to 7.5 sen with some 126.88 million shares traded.

Volatility in trading of shares of companies like Dataprep Holdings Bhd, Widad Group Bhd, Dagang NeXchange Bhd contributed to trade volumes.

Dataprep, which closed 44 sen lower at RM3.35, saw big swings in its share price, hitting a high of RM413 and low of RM2.66 in intraday trade.

Widad, which has a common shareholder as Dataprep, saw its share price swing between a high of 80 sen and a low of 61 sen, before closing at 71.5 sen yesterday with 51.3 million of its shares traded.