SELECT penny stocks made substantial gains in heavy trading yesterday as punters shifted their attention to these faster moving counters in the absence of new leads elsewhere in the market.
Landmarks Bhd closed 5.5 sen up at a six-week high of 70 sen, Golden Plus Holdings Bhd advanced 10 sen to 85 sen, while NV Multi Corp Bhd ended the day unchanged at 50 sen despite starting off on a strong note.
The three counters were among the most actively traded of the day, but the spotlight was on Liqua Health Corp Bhd, which surged 16.5 sen to a new high of RM1.05 with 35.1 million shares changing hands. Liqua warrants also made strong gains, rising 14.5 sen to 90 sen on volume of 613,000 units.
The health food supplement marketing company told Bursa Malaysia it had bought back an additional two million of its own shares yesterday at between 92 sen and 95 sen each.
While Liqua's advance was driven mainly by its share buyback, another direct selling company, DXN Holdings Bhd, saw its stock gaining 7.5 sen to close at 88.5 sen on speculative interest following a report that a block of two million DXN shares had changed hands in an off-market deal.
The sudden burst of liquidity in these stocks made it attractive for investors to consider punting in the hope of making some quick money, a local fund manager said.
Dealers said the buying interest in Landmarks was largely fuelled by market talk of possible asset sales by the company to reduce debts and improve its future earnings.
Landmarks had made a net profit of RM15mil for the first quarter ended March 31 against a loss of RM20mil a year ago, while property developer Golden Plus posted a net loss of RM3.4mil for the first quarter.
Commenting on yesterday's stock movements, the fund manager cautioned investors not to get too greedy given the current weak market sentiment overall.
Investment decisions should be based on fundamentals rather than on intuition and speculation, he said.
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