KUALA LUMPUR (Nov 2): The local bourse regulator is advising investors to exercise caution in the trading of the shares of XOX Bhd — which completed its share price and premium reduction today — after the recent sharp rise in the mobile operator's share price.

"Bursa Malaysia Securities wishes to draw investors' attention to the recent sharp rise in the price of XOX shares and to the company's responses to the unusual market activity queries issued by Bursa Malaysia Securities Oct 5, 2015 and Oct 26, 2015.

"The company in its responses confirmed that it was not aware of any corporate development or explanation that could give rise to the unusual trading activities in its securities," Bursa noted in a filing today.

In view of the above, it said it would like to advise investors to exercise caution and to make informed decisions in the trading of XOX's shares.

"Bursa Malaysia Securities will not hesitate to take appropriate regulatory action to ensure fair and orderly trading of XOX shares," it added.

In a separate filing, XOX said an office copy of the sealed order of the High Court of Malaya confirming the par value reduction and share premium reduction has been lodged with the Companies Commission of Malaysia today, "upon which the par value reduction and share premium reduction shall take effect and hence deemed completed".

"All shares held in the securities account of the shareholders of the company shall be unaffected, except for the reduction in their par value from 10 sen to 5 sen per share," it added.

XOX shares hit a high of 34.5 sen after going up as much as 11.29% today, before paring gains.

After Bursa's caution at 3.02pm, XOX pared gains to trade at 29 sen, down two sen or 6.45%, after some 118.01 million shares changed hands, making it the most actively-traded counter on the bourse today.

XOX's counter has been on an upward surge for almost two months. The stock, which was at only seven sen on Sept 4, has since more than quadrupled to its present price, bringing its market value to RM102.92 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)