KUALA LUMPUR (Sept 12): Public bus operator Konsortium Transnational Bhd (KTB) rose as much as 10% to be Bursa Malaysia's most-actively traded stock in morning trades. Remisiers said KTB rose as much as 4.5 sen to 51 sen to hit a seven-year high.
KTB later reduced gains. At 10.22 am, KTB was transacted at 48 sen with over 46 million shares traded.
At 11.42am, KTB changed hands at 49.5 sen. The FBM KLCI fell 1.42 points or 0.1% to 1,868.05.
The positive run in KTB's share price came after an off-market deal between Nadicorp Holdings Sdn Bhd and Affin Investment Bank Bhd.
To recap, Nadicorp bought 64 million shares or 15.89% in KTB from Affin at 62.5 sen each last Monday (Sept 8) in an off-market deal. The stake was Affin's entire shareholding in KTB.
On KTB, a bank-backed share market trader said the stock was gaining “strong momentum” and “moving up nicely”.
“Technically, this is a seven-year high since it reached 63.5 sen in 2007. 63.5 sen is the resistance level now.
"If it breaches that, it may reach 86 sen,” he said.
He said the price at which Nadicorp paid for KTB shares was a signal to the market that KTB was undervalued.
“The price Nadicorp paid for the 64 million shares was a premium to what it was trading. The market reacted to that and has continued to accumulate the stocks even when the price was dipping,” he added.