Short-selling in Power Root shares suspended after falling 15.98% to low of RM1.42

KUALA LUMPUR: Short-selling of shares in Power Root Bhd has been suspended by Bursa Securities after its share price plunged as much as 27 sen or 15.98% to RM1.42 a share in intra-morning trade.

As at 11.45am, the stock was trading 14 sen or 8.28% below the reference price at RM1.55 a share, which represents a two-week low.

The company's warrants were down three sen or 13.04% to 20 sen a unit.

Under Bursa regulations, short-selling under PDT and IDSS is suspended in the event the counter drops more than 15% from the reference price (or 15 sen for securities priced below RM1).

According to the stock exchange operator, short-selling of the stock will be allowed to resume on the following trading day on Monday, May 30, 2022, at 8.30am.

The reason for the sharp decline in share price was not immediately clear .

In a Thursday filing with Bursa Malaysia, it was showed that Kumpulan Wang Persaraan (Diperbadankan) (KWAP) had upped its stake in Power Root to 6.198% direct holding and 0.71% indirect holding.

Earlier filings with the stock exchange show that the public services pension fund had been increasing its stake in the company over the last month.

On April 25, KWAP's interest in Power Root stood at 6.146% direct stake and a 0.364% indirect stake.

Power Root closed at a one-year high of RM1.69 a share in the previous session, having rallied about 36% since March 9.