Reporting by independence marketing analyst
We thought when PDZ Holdings Bhd’s largest shareholder Pelaburan Mara Bhd disposed of its entire shareholding of 50.62 million shares or a 5.71 per cent stake in the company, the stock would fall drastically but that did not happen to the joy of small retail investors.
PDZ told Bursa Malaysia on July 8 that Pelaburan Mara has sold off its entire stake in the company.
While we thought the market would react negatively to this, there was positive trade for the stock.
Probably because talks have surfaced that Tan Sri Syed Mokhtar Albukhary, one of Malaysia’s most prominent businessmen is expected to emerge as a substantial shareholder in the company.
PDZ shares were heavily traded on July 8. Its price jumped 11.5 sen or 127.78 per cent to 20.5 sen, giving it a market capitalisation of RM181.75 million.
The highest the stock went to was 23 sen and by the end of the trading day some 1.33 billion shares were traded.
Then on July 9, the stock rose again to touch 23 sen before closing the day at 20 sen.
The shares, which were trading at 3 sen apiece at end-2019, have been rising since the company returned to the black in its first quarter ended March 31, 2020 with a net profit of RM130,000, compared with a net loss of RM437,000 a year earlier.
PDZ is involved in the container liner business.
According to its website, it operates six vessels that cover domestic and regional trade between Malaysia, Brunei, Singapore and Myanmar.
The company recently won a RM600 million contract from a large e-commerce operator in China. This has attracted a global fund from the United States or a large e-commerce operator, whom we think is Amazon or eBay.