Monday, May 23, 2011

Hap Seng extends losses, hits lowest since December

KUALA LUMPUR: Shares of HAP SENG CONSOLIDATED BHD [] fell to the lowest since early December 2010 as investor continued to sell down the stock on disappointments over the share placement exercise.

The weaker overall market sentiment also weighed down the stock. The 43.80 million new shares were listed on Monday also.

At 12.30pm, Hap Seng was down 16 sen to RM5.16 with 1.35 million shares done. This was the lowest since Dec 6 when it was at RM5.16.

The FBM KLCI fell 6.79 points or 0.45% to 1,534.24. Turnover was 399.40 million shares valued at RM482.97 million. There were 156 gainers, 502 losers and 264 stocks unchanged.

On May 12, the company announced it had fixed the issue price for the placement shares at RM5.25, or 9.9% below the five-day volume-weighted average market price up to May 11 of RM5.83.

The company had then said the book-building exercise for the proposed placement of 43.80 million shares saw interest exceeded the amount offered. There was interest for about 62 million shares.

After the announcement of the fixing of the placement price, the shares have been sliding on investors' disappointment over the pricing.

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