Harvest Court Industries Bhd shares slumped to the 30 per cent limit-down level yesterday, but in a sign of the changing times, there was no selldown on other penny stocks.
Most penny stocks rose in the early hours of trade. For example, Tricubes Bhd rose as much as 87 per cent, or 13.5 sen, to 29 sen and Fitters Diversified Bhd’s warrants increased by as much as 13.5 per cent, or 6.5 sen, to 54.5 sen each, before giving up some gains due to weakness in the Hong Kong stock market.
Tricubes ended the day at 26 sen, while Fitters warrants closed unchanged at 48 sen.
“There was no panic selldown in other stocks, with sentiment being affected by outside factors,”said a dealer.
Five years ago, it was a different story when a fellow ACE Market (then Mesdaq) counter was designated.
When Iris Corp Bhd was declared as a designated stock, it had caused a ripple effect on the broader market. The then benchmark Kuala Lumpur Composite Index (KLCI) fell by 0.15 per cent, while the Mesdaq and Second Board indices were down by 3.45 per cent and 4.63 per cent respectively.
The next day, when Iris resumed trading after suspension due to a material announcement, the KLCI fell by another 0.49 per cent, while that of Mesdaq and Second Board fell by another 3.45 per cent and 0.21 per cent respectively.
Iris shares had declined 26 per cent on its first day as a designated stock.
On Tuesday, Harvest Court was slapped by Bursa Malaysia Bhd and declared as “designated securities”. This means any investors who wants to buy the stock must pay cash upfront.
Harvest Court shares eased to RM1.49 yesterday and it appears that the announcement that the company had won a RM70 million contract failed to do much damage control or stop investors from dumping the shares.
"There were not many buyers willing to buy even at the RM1.50 level. The anticipation is that the stock may face another session of dumping tomorrow (on Thursday)," said a research head from a local brokerage.
Analysts also pointed out that retail investors today are more savvy. Therefore, their investment decisions are also based on a stock's fundamentals as well as local and foreign news flow.
"I think retailers have somewhat learnt their lessons, where they put their money on companies that are profitable, fundamentally sound, and so forth. It's a good change," the research head said.
Most penny stocks rose in the early hours of trade. For example, Tricubes Bhd rose as much as 87 per cent, or 13.5 sen, to 29 sen and Fitters Diversified Bhd’s warrants increased by as much as 13.5 per cent, or 6.5 sen, to 54.5 sen each, before giving up some gains due to weakness in the Hong Kong stock market.
Tricubes ended the day at 26 sen, while Fitters warrants closed unchanged at 48 sen.
“There was no panic selldown in other stocks, with sentiment being affected by outside factors,”said a dealer.
Five years ago, it was a different story when a fellow ACE Market (then Mesdaq) counter was designated.
When Iris Corp Bhd was declared as a designated stock, it had caused a ripple effect on the broader market. The then benchmark Kuala Lumpur Composite Index (KLCI) fell by 0.15 per cent, while the Mesdaq and Second Board indices were down by 3.45 per cent and 4.63 per cent respectively.
The next day, when Iris resumed trading after suspension due to a material announcement, the KLCI fell by another 0.49 per cent, while that of Mesdaq and Second Board fell by another 3.45 per cent and 0.21 per cent respectively.
Iris shares had declined 26 per cent on its first day as a designated stock.
On Tuesday, Harvest Court was slapped by Bursa Malaysia Bhd and declared as “designated securities”. This means any investors who wants to buy the stock must pay cash upfront.
Harvest Court shares eased to RM1.49 yesterday and it appears that the announcement that the company had won a RM70 million contract failed to do much damage control or stop investors from dumping the shares.
"There were not many buyers willing to buy even at the RM1.50 level. The anticipation is that the stock may face another session of dumping tomorrow (on Thursday)," said a research head from a local brokerage.
Analysts also pointed out that retail investors today are more savvy. Therefore, their investment decisions are also based on a stock's fundamentals as well as local and foreign news flow.
"I think retailers have somewhat learnt their lessons, where they put their money on companies that are profitable, fundamentally sound, and so forth. It's a good change," the research head said.
