KUALA LUMPUR (July 31): Shares in Supermax Corp Bhd ( Financial Dashboard) surged 20 sen or 8.81% to its one-year intraday high today on market talk that the group may soon be embarking on a corporate exercise, such as a bonus issue.
At 3.56pm, the stock narrowed some gains to trade at RM2.45, still up 18 sen or 7.93%, making it one of the top gainers across the bourse, after some 16.82 million shares changed hands.
The counter, which was trading at RM2.12 on July 28, has since climbed 15.6% to its current price, which gives it a market capitalisation of RM1.65 billion. The share price rally has added some RM215 million to its market value.
A remisier told theedgemarkets.com that the price rally could be due to market talk that the group may have a corporate exercise like a bonus issues, in the near term.
“However, it’s all speculation at this point. No one knows for sure until Supermax makes an announcement,” he added.
He also said Supermax (fundamental: 1; valuation: 0.8) is also comparatively cheaper compared to other rubber glove peers like Top Glove Corp Bhd ( Financial Dashboard) and Hartalega Holdings Bhd ( Financial Dashboard).
He said while Supermax has been hovering around RM2 since 2013, Top Glove has climbed to RM7.55 from RM5-RM6 in 2013. Hartalega, meanwhile, is now at RM8.65 compared with around RM6.50 in 2013.
“This may also have prompted investors to accumulate the stock as it is comparatively cheaper to other rubber glove stocks,” the remisier said.
