Investors buy and sell out of Sanichi and DVM over short period

PETALING JAYA: Sanichi Technology Bhd and DVM Technology Bhd are in the limelight as certain investors have bought into and sold out of these companies in a very short span of time, raising questions about their motives.

It is unclear at this point if the Securities Commission (SC) is investigating these matters. When asked to comment, a SC spokesperson said: “The SC does not confirm or deny matters that it may or may not be investigating.”

In Sanichi's case, its stock hit limit-up on Aug 2, gaining 66% to 7.5 sen on exceptionally heavy trading volume. A day later, it was reported that Datuk Md Wira Dani Abdul Daim, son of former finance minister Tun Daim Zainuddin, was a new substantial shareholder of the design and fabrication of precision mould and tooling firm, with 10 million shares or 6.1% in the loss-making firm.

On the same day, Sanichi shares surged to 9.5 sen before hitting 10.5 sen the following day.

On Aug 5, filings with the stock exchange showed that Wira Dani had sold all his shares at an undisclosed price. Sanichi shares had since dropped to 6 sen as at yesterday.

In the case of DVM, another loss-making company, Christian Kwok-Leun Yau Heilesen and Raymond Yip Wai Man announced last week that they were no longer substantial shareholders of the company.

Heilesen and Yip, bought a 6.85% and 8.19% stake in the information communications technology-related company respectively on Aug 4 and had increased their stakes to 9.46% and 10.43% on Aug 12.

Heilesen disposed of 8.35 million shares on Aug 15, reducing his stake to 4.71% in the company while Yip disposed of 9.8 million shares on the same day, reducing his stake to 4.85%. DVM's stock reached a six-year high, closing at 25 sen on Aug 2 but it had slumped 50% to 13 sen as at yesterday.

Shareholders emerging and selling out quickly had also transpired at Kenmark Industrial Co (M) Bhd last year. The company created headlines after its key management and Taiwanese executive directors went missing, leaving the company in a fix.

A week later, former director and tycoon Datuk Ishak Ismail, emerged as a substantial shareholder in the firm but he sold off his entire stake within two weeks for a profit.

The SC had obtained a court injunction to stop Ishak from using the RM10.2mil proceeds from his sale of 58.7 million Kenmark shares.

The SC has since commenced civil proceedings against Ishak.

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