KUALA LUMPUR (Aug 5): Garment manufacturer and property developer Yong Tai Bhd’s shares extended losses to as much as 11 sen or 14.97% to 62.5 sen in morning trade today after institution investors sold down the shares.

Yong Tai's shares pared losses to settle at 64.5 sen as at 12pm, with 8.67 million shares changing hands.

Meanwhile, its structured warrant Yong Tai-WA also plunged. YongTai-WA had dipped 10 sen or 22.47% to a low of 34.5 sen, but pared losses to 37 sen as at 12pm, with some 5.6 million units traded.

SJ Securities Sdn Bhd remisier Goh Kay Chong said that the plunging of Yong Tai’s share price may be due to institutional investors getting out and retailers going in.

“It might be [that] institution investors had achieved their price objectives so they sell out, while retailers thought it is attractive to go in because of the announcement,” Goh told theedgemarkets.com.

He said the support level for this counter at the moment is 62.5 sen.

The shares of Yong Tai had been trading on an upward trend between July 20 and 31, which saw the share gain 59.2% during the period, before the company suspended trading on Monday (Aug 3) pending material announcement.

On Monday, Yong Tai announced that the company has entered into five separate memorandums of understanding (MoU) with PTS Impression Sdn Bhd, Yuten Development Sdn Bhd, Terrawest Resources Sdn Bhd, Land & Build Sdn Bhd and Admiral City Sdn Bhd.

Under these MoUs, Yong Tai and the other parties agreed to negotiate towards entering into definitive agreements for a host of proposed business and land acquisitions and joint developments that can provide it five potential property development projects with a combined gross development value of about RM7 billion over the next eight years in Melaka, Klang Valley and Johor.