SO Serba Dinamik Holdings Bhd bucked today’s (June 30) bearish market trend which saw the FBM KLCI shedding 15.68 points by closing in the green albeit a mere 1 sen higher.
Stock in the global integrated oil & gas (O&G) service provider closed at 33 sen after trading between a range of 30.5 sen and 35 sen with a total volume of 379.58 million shares (which was enough to make the counter the day’s most active counter), thus valuing the company at RM1.23 bil.
Unlike the past two days of the week, what is evident today is perhaps strong buying interest which was able to absorb selling pressure by institutional investors – chiefly the Employees Provident Fund (EPF) – and the inevitable margin call on its substantial shareholders.
On June 28, group managing director/CEO Datuk Dr Mohd Abdul Karim Abdullah parted with 46.3 million shares or 1.25% of his stake (leaving him with 25.82%) due to force selling, according to a Bursa Malaysia filing dated today.
Joining Abdul Karim in the ‘inevitable dumping spree” is company co-founder Datuk Awang Daud Awang Putera who sold a further 26.94 million shares in the company between June 28 and today (June 30), which ultimately left him with 0.69% stake in Serba Dinamik.
Similarly, on the same date, EPF disposed of a further 96 million shares in the open market which brought down the retirement fund’s shareholding in Serba Dinamik to 7.58%.
“As the share price has tanked almost 80% from its peak, many investors and day traders are taking opportunity to hitch a ride on any potential of a technical rebound,” a stock market analyst who is familiar with Serba Dinamik told FocusM.
“Technical-wise, as the stock is oversold at the current price, a rebound maybe imminent prior to the stock entering into a consolidation phase.”
So is Serba Dinamik a fruit ripe for the picking especially by those lion-hearted investors?
“Frankly, whether the rebound can be equated to catching falling knife or genuine for that matter very much hinges on positive news flow,” opined another market observer.
“Important developments for now would be the official appointment of its independent reviewer amid the July 2 deadline given by Bursa Malaysia and replacements for the five independent directors who quit last Friday (June 25).” – June 30, 2021
