THE contagion effect from the limit down of Serba Dinamik Holdings Bhd on two stocks linked to the company’s group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah came to ‘an abrupt halt’ today.
KPower Bhd (formerly known as Kumpulan Powernet Bhd) and Sarawak Consolidated Industries Bhd (SCIB) which have both borne the brunt of the global oil & gas (O&G) integrated engineering services provider’s accounting woes since May 27 firmed considerably this morning.
While Serba Dinamik was suspended on May 27 and 28 – and only resumed trading yesterday (May 31) – both KPower and SCIB saw their share prices dragged down substantially by their affiliation to Abdul Karim.
Recall that KPower has recently clarified that the company and Serba Dinamik are two distinct and separate entities which run independently of each other, save for having Abdul Karim as a major shareholder and non-independent non-executive chairman who is not involved in the company’ day-to-day operations or management.
At the close of this morning’s trading session, KPower appreciated 20 sen or 18.52% to RM1.28 with 45.58 million shares traded, thus valuing the company at RM579 mil.
Based on KPower’s annual report, Mohd Karim holds a 33.29% stake in the company.
Meanwhile, SCIB who also has Abdul Karim on board as its non-independent non-executive chairman and largest shareholder with a stake of 47.53%.
Apparently, SCIB which fared worse than KPower during the sell-down of companies linked to Abdul Karim, soared 11.5 sen or 12.71% to RM1.02 with 81.45 million shares exchanged hands at the close of the morning trading session.
Serba Dinamik, which had its external auditor KPMG PLT flagging some audit matters in relation to the company’s FY2020 financials, also rebounded slightly after a second limit down which pushed down the stock to 79.5 sen this morning.
Yesterday, the counter plunged 48 sen or 29.81% to close at its limit down price of RM1.13
At the close of the morning session, Serba Dinamik which was the most actively traded stock was down 24 sen or 21.24% at 89 sen with 1.4 billion shares traded. – June 1, 2021
