Tongkah, Wembley shares plunge on suspension news


By KATHY FONG

Shares in both Tongkah Holdings Bhd and Wembley Industries Holdings Bhd took a beating yesterday following news the two PN4 companies' securities, together with those of UCP Resources Bhd, would be suspended from trading from Jan 10. 

Tongkah tumbled 37.5% or 1.5 sen to 2.5 sen, with 569,000 shares traded, while Wembley dropped 44% or two sen to 2.5 sen, on fairly active volume of 707,000 shares. Both stocks finished the day at their historical lows. 

There was no transaction in the shares of UCP yesterday. The stock was last traded at 11 sen on Dec 11 last year. 

UCP told to the KLSE yesterday that it had submitted applications on the same day to the Securities Commission, Foreign Investment Committee and International Trade and Industry Ministry for a revision of its original corporate and debt restructuring scheme. 

The KLSE, in announcing the suspension of trading in the securities of the three counters, said the three companies had failed to obtain the authorities' approval for the implementation of their regularisation plans by Dec 31 last year, which is a requirement under Practice Note No. 4 (PN4). 

The latest announcement will increase the number of PN4 companies that have been suspended from trading to 70 from 67.  

There are 94 PN4 companies on the exchange. 

Analysts viewed yesterday's heavy selling of Tongkah and Wembley stocks as shareholders' “final efforts'' to salvage a little of their investments. 

Tongkah, which formerly owned assets in stockbroking and healthcare, was once a favourite of punters. The company, which traded at above RM3 in 2000, was considered politically well-connected. 

The company recently proposed a restructuring which involved a backdoor listing for Sarawak-based Harbour-Link Group Bhd

Wembley, which is linked to Tan Sri Ting Pek Khiing, had also proposed a debt restructuring scheme in July last year. 

The board of the loss making property company intends to reduce capital and issue irredeemable convertible unsecured loan stocks (Iculs) to settle its bank borrowings. 

The securities of UCP and Wembley have been placed under trading restriction since March 1, 2002, while Tongkah's shares were placed under trading restriction on March 6 last year.  

For latest Tongkah share prices and charts click here

 

For latest Wembley share prices and charts click here

 

For the latest KLSE indices and other information click here

 

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