Monday, September 27, 2010

Masterskill shares advance in early trade

KUALA LUMPUR: Masterskill Education Group Bhd share price rose on Monday, Sept 27 after its CEO and founder explained the recent plunge in the counter's share price could have been due to a large disposal by a foreign hedge fund.

At 10.25am, Masterskill rose 12 sen to RM3.12 with 504,300 shares traded.

Datuk Seri Edmund Santhara had told The Edge weekly that he was unfazed by the share price plunge as hedge funds were short-term investors.

He said he would only be worried if long-term foreign investors such as Fidelity Investments and SmallcapWorld Fund decided to exit.

"These shareholders are for the long term. If they exited, I would call that a crisis.

"But now that we are trading at below IPO price, local funds such as the EPF, PNB or even Lembaga Tabung Haji could come in as they are keen at this price range of RM3 to RM3.30, This is a window of opportunity for them," he said.

Since Sept 1, the counter had plunged 26% to a record low of RM2.96 last Thursday before closing at RM3 last Friday, well below its IPO price of RM3.50.

Within 18 trading days, the company saw about RM400 million wiped out from its market capitalisation.


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