Short selling of E&O suspended after breaching price limit


Affin Hwang Capital Research said the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019.

KUALA LUMPUR: The short selling of property company Eastern & Oriental was suspended in late Tuesday morning session after its share price fell more than 15 sen or 15%.

At 11.45am, it was down 20 sen to 89 sen in active trade. The short-selling activities will only resume on Wednesday.

The company had asked investors for RM550.3mil to fund its property development projects.

It aims to raise as much as RM550.3mil via a private placement and renounceable rights issue to fund its property development projects.

The proposed private placement will involve the issuance of up to 10% of E&O’s issued share capital of 1.31 billion shares.

The renounceable rights issue will include free detachable warrants on an issue price and basis to be determined later.

Affin Hwang Capital Research said it believes the overhang from the equity issuance will dampen sentiment on the stock in the short to medium term. 

“But the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019. Maintain Buy,” it said.

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

GLOBAL MARKETS-MSCI global stock index has biggest first-half drop on record Premium
From EU to BRICS and NATO, June meetings showcase global strains Premium
Oil price falls 3% on uncertainty over future OPEC+ output, recession fears Premium
STOCKS: S&P 500 closes the book on its steepest first-half slide in 52-yearssince 1970 Premium
DNB stake sale meets deadline Premium
UK household incomes are in the longest-ever run of decline Premium
Poultry players’ earnings to improve slightly Premium
Marine and General 4Q revenue rises Premium
MBSB appoints Nor Azam as group CEO Premium
Companies to explore relocation of KKIA to Kimanis Premium

Others Also Read