PETALING JAYA: Since last Friday, BSL Corporation Bhd (BSL Corp) has plunged 64.28%, prompting Bursa Malaysia to issue an unusual market activity (UMA) query today on the possible reasons for the steep drop in its share price.
BSL Corp responded to Bursa’s UMA query, saying they “are not aware of any reason” for the recent fall in share price.
Its share price tumbled 55% from 14 sen on Friday to 6 sen at the close yesterday with 160.4 million shares traded. It fell another 16.67% or 1 sen today to 5 sen, valuing the company at RM94.1 million.
The company is primarily involved in the manufacturing of electrical components, precision metal parts and the fabrication of tools and dies. Since listing, it has established joint ventures in tube manufacturing and solar-related industries.
Highlighting the sharp fall in its share price and volume traded yesterday, Bursa requested BSL Corp to disclose any corporate developments, rumours or reports concerning the business and affairs of the group, and any other possible reasons, which may account for the UMA.
In its filing today, BSL Corp said the only recent development – made known to Bursa – that will be taking place, is a corporate exercise in relation to the rights issue of 1.65 billion new shares on March 15, 2023.
“The board is not aware of any other corporate development relating to the company and its subsidiaries’ business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion,” the company said.
BSL Corp has also said it is in compliance with Bursa’s Main Market listing requirements obligations and will continue to make necessary announcements of any material information to the regulator.
After changing its financial year from Aug 31 to Dec 31, 2022, BSL Corp announced a net loss of RM10.1 million in the four months to Dec 31, 2022.
The company said its bottom line was impacted by their Custom’s lawsuit with Panasonic Malaysia and impairment on its investment in China which amounted to RM12.4 million.
BSL Corp said it expected continued “weak customer demand” in 2023, compounded by lagging supply chains and manufacturing bottlenecks.