KUALA LUMPUR (June 1): Dogged by selling pressure, Serba Dinamik Holdings Bhd hit limit down again for the second consecutive day after it tumbled by as much as 30% or 33.5 sen to 79.5 sen.
At noon break, the counter pared some losses at 89 sen, but was still down 24 sen or 21.24%, marking the second day of heavy selldown due to its audit issues. Yesterday, the stock closed at RM1.13 after plunging some 30% or 48 sen.
The stock was the day’s most actively traded stock on the local bourse, with 1.4 billion shares exchanging hands so far.
Meanwhile, Serba Dinamik-WA was second on the list of most active counters, with a trading volume of 551.68 million, after it surged 50% or four sen to 12 sen.
On the other hand, stocks linked to its group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah headed north this morning.
KPower Bhd was among the day’s top gainer after its share price rose 20 sen or 18.52% to RM1.28, for a market capitalisation of RM579 million. There were 45.58 million shares traded.
Sarawak Consolidated Industries Bhd (SCIB) also gained 11.5 sen or 12.71% to RM1.02, making it the fifth top gainer across Bursa Malaysia. It had a market capitalisation of RM500 million. There were 81.45 million shares transacted.
KPower and SCIB’s performance today contrasts starkly against yesterday’s, where KPower ended 23 sen or 17.56% lower at RM1.08 while SCIB fell 24.5 sen or 21.3% to settle at 90.5 sen.
Mohd Abdul Karim is the largest shareholder for both KPower and SCIB, holding a 33.29% and 37% stake respectively.
Notably, Mohd Abdul Karim is also the largest shareholder of Serba Dinamik, with a 26.93% stake.
To recap, Serba Dinamik's share price took a dive after its board of directors was informed by the company's external auditor KPMG on some matters pertaining to its statutory audit.
Subsequently, in a bourse filing last Tuesday (May 25), the oil and gas services and engineering group said it was in the midst of appointing an independent firm to commence a special independent review to assess the veracity and accuracy of the matters.
However, Mohd Abdul Karim stressed that the group had done nothing wrong and described KPMG as acting in an "unfair" and "peculiar" manner for going straight to the group's independent directors to address the audit issues — instead of briefing the management first.
Read also:
Serba Dinamik hits limit down, RM3.04 billion market value lost in two days
S&P downgrades Serba Dinamik credit rating to 'B-' on reduced funding access
MICG: Dispute between Serba Dinamik and external auditor raises serious governance concerns
Serba Dinamik hits limit down on company's audit issues after trading resumed today
Stocks linked to Serba Dinamik's Karim plunge as counter hits limit down
MARC places Serba Dinamik's rating on MARCWatch Negative due to issues concerning FY20 accounts
Frankly Speaking: Red flags at Serba Dinamik need clear answers