MGRC unaware of reasons for sharp share price drop

The exchange has issued the UMA on Monday after MGRC shares fell limit down or 30% in the afternoon trading session to close at RM1.67


Malaysian Genomics Resource Centre Bhd (MGRC) stated it was unaware of any reason for the sharp drop in its share price over the past two trading days in response to the unusual market activity (UMA) query issued by Bursa Malaysia.

The exchange has issued the UMA on Monday after MGRC shares fell limit down or 30% in the afternoon trading session to close at RM1.67.

The company’s share fell limit down or another 30% or 50 sen a share yesterday to RM1.17 a share, which takes its total loss to RM1.21 sen in the past two trading days, which has wiped out some RM150 million in MGRC’s market capitalisation.

Under exchange rules the share’s downside price limit is set at RM1.17 for today with MGRC share price allowed to trade higher assuming buying interest emerges.

“If there is not buying interest the shares can fall by another 30% to 82 sen. This stock’s share price has been on steady rise over the past year without any fundamental change to back the jump,” said a chartist with a local brokerage.

He added the trading pattern on Tuesday suggests the stock price could see more weakness unless buying interest emerges.

MGRC share price has hit a 52-week high of RM2.72 and low of 68.5 sen.

In a filing to Bursa Malaysia yesterday, MGRC stated it was not aware of any corporate development, rumour, report or explanation that may have accounted for the trading activity.

It also said the group is in compliance with Bursa Securities’ Listing Requirements in particular Paragraph 9.03 of the Bursa securities LR on immediate disclosure obligations.

On Nov 8, the group was issued an UMA query following a sharp fall in its share price after its largest shareholder I Concept Global Growth Fund ceased to be a substantial shareholder a few days earlier.

In response to the UMA query, MGRC appointed two new independent and non-executive directors effective Nov 8, while major shareholder Pixelvest Sdn Bhd bought more shares.

Pixelvest acquired another 200,000 shares on Dec 1.  

From a business perspective, MGRC recently partnered with new generation matchmaking platform, MatchMde, to roll-out Southeast Asia’s first biocompatibility relationship matching service for users on MatchMde’s platform.

Dubbed ‘The Gene Match’, the opt-in service will be available to all MatchMde users in the Philippines, Singapore and the United States of America towards the end of 2021.

MGRC posted a net profit of RM239,000 for its first quarter ended Sep 30, 2021 on the back of RM9.3 million in revenue.