AMID a bearish market sentiment as evident by the FBM KLCI slipping 6.11 points or 0.4% at the mid-day break, it is inevitable that Serba Dinamik Holdings Bhd succumbed to profit taking activity after having displayed strong rebound to close in the green for three consecutive sessions (July 2, 5 and 6).
The trend is perceived as a healthy consolidation phase given the global integrated oil & gas (O&G) outfit has ‘awakened’ from its historical low of 30.5 sen on June 30 to test the 54.5 sen level yesterday before ending the trading session at 51 sen for a 2.5 sen or 5.15% gain.
“Some profit taking activity can be seen after Serba Dinamik posted a strong rebound of late but on the overall, an upside is very much intact,” a market observer who is familiar with the company told FocusM.
At 3.06pm, Serba Dinamik was down 1.5 sen or 2.94% to 49.5 sen with 202.65 million shares traded, thus valuing the company at RM1.84 bil. The stock has been trading at a range of 49 sen and 52 sen thus far today (July 7).
On the corporate front, Serba Dinamik expects to hire a new external auditor to replace KPMG PLT which resigned from the role on June 24 by end-July after having submitted the request of proposal for provision of external audit to international audit firms on June 27.
With that development and after having cemented the appointment of its special independent reviewer in Ernst & Young Consulting Sdn Bhd (EY) last Friday (July 2), Serba Dinamik has reiterated its decision to appoint new independent directors to its board soonest to oversee its full corporate governance function.
“The board has finalised the two names – that of one man and a woman – who are both experienced individuals and subject matter experts in governance and integrity and risk management,” a source close to the top management told FocusM yesterday (July 6).
“Both names are very important to Serba Dinamik in order to enhance and strengthen its board composition. This is definitely a good sign to restore confidence of shareholders. The management has nothing to hide and will allow its independent directors to protect the interest of its shareholders at all cost.” – July 7, 2021
