Harvest Court Industries Berhad Still Attract Strong Buying Support
The share of Harvest Court Industries Berhad, a timber manufacturer, still attract a lot of buyer and speculative trading activities. Since this stock counter was Designated By Bursa Malaysia, all stock purchased must be in cash upfront(No contra trading allowed).
The share price didn’t not plunge or stay stagnant BUT It rose up!
The trading restriction by Bursa Malaysia Securities on Nov 14 have failed to curb the speculative trading activities. The stock fell after the imposition of the trading curbs but later managed to stage a mild rally before declining again.
Securities of Harvest Court Industries was one of the top gainer when close on last Friday at RM1.03 with a price gain of RM0.13.
It’s a norm that once the stock was Designated By Bursa Malaysia, the stock will have a weak buying support and the price will plunge or stay stagnant.
It seem this don’t happen to Harvest Court Industries Berhad. Maybe there are something that other know but not the public.
Harvest Court Industries Berhad was the first stock to be designated by Bursa Malaysia since 2006.
For comparison, Iris Corp, which manufactures electronic security cards and passport, was designated on 11th May 2006 after it move up more than 300%, from RM0.33 to a year high of RM1.36 in middle of March 2006.
Iris stock price plunge over 50% from RM1.36 to lowest RM0.655 when the stock resume open for trading on 16th May 2006. It closed at RM1 on that day. The designated status for Iris was lifted on 22 June 2006 and its share price stayed high for a about a month before tumbling. It was trading at RM0.165 today and has been trading in the range of RM0.13 to RM0.26 over 52 week.
The main purpose for the Bursa Malaysia to designated a stock counter is to control excessive speculation by curbing contra trading. This’s to ensure a fair and orderly market.
The imposition of this ruling for the Harvest Court’s shares and the warrants are in force until further notice.
Once a stock was declare to be designated, the stock trading will continue as usual but upfront payment is required before any purchase done and there must be a free balance of securities before a sales can be executed.
Buyer/Investor beware!