KUALA LUMPUR (Sept 11): Plenitude Bhd, which is involved in property development, property investment and hospitality, saw a spike in trading volume last week.
According to a report by The Edge Malaysia this week, this has “added to the speculation that” former finance minister Tun Daim Zainuddin “or his family is selling their equity interest and cashing out, given that his family members own a large stake in the property developer”.
Reports last Wednesday revealed that Plenitude’s share price “surged” as much as 26% to an 18-month high of RM1.26 as trading volume went to a high of 3.51 million shares. By Friday, the stock had declined to RM1.02, translating into a market capitalisation of RM389.16 million.
“The counter’s average daily trading volume had been mostly thin prior to last week’s spike to 830,000 shares, which was 115 times higher than the 7,200 shares traded in the previous week,” wrote The Edge.
“Many property stocks are trading at low price-to-net tangible asset ratios, but we are not sure what triggered that [high trading volume],” a property analyst told the weekly.
Plenitude had to close three of its hotels last year owing to impact from the Covid-10 pandemic. They were Mercure Penang Beach and The Gurney Resort Hotel and Residences in Penang, and Travelodge Ipoh.
It still has “prominent hotels” such as Novotel Kuala Lumpur City Centre, Oakwood Hotel & Residence in Kuala Lumpur, Travelodge Georgetown in Penang and Travelodge Myeongdong Euljiro in Seoul, South Korea.
It also has equity interest in The Nomad Residences Bangsar in Kuala Lumpur and Tanjung Point Residences in Penang
“However, market volatility has prompted the property developer to adopt a more cautious approach to new launches,” stated the weekly.
Read the full report in this week’s The Edge Malaysia
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