DVM Technology shares suffered worst decline in four years

DVM Technology Bhd shares suffered its steepest single-day drop in more than four years, a day after it was queried by stock market regulator.

DVM Technology, an IT solutions and services provider, saw its shares on Bursa Malaysia tumbled by 42.2 per cent or 9.5 sen to close at 13 sen today. This was its steepest decline since May 22, 2009, when its share price fell by more than 52 per cent.

There were more than 100.3 million shares changed hands, making it the second most actively traded stock for the day (after MAS).

Bursa Malaysia issued a Unusual Market Activity query on DVM Technology yesterday -- which saw its shares jumped by 50 per cent to 22.5 sen.

The spike in trading volume also got the attention of the regulator. There were over 60 million shares traded on June 3 alone, in contrast, the average trading volume between May 20 and June 3 was just over 2 million shares.

"The board after having made due enquiries, wishes to advise that to the best of its knowledge, it is not aware of any corporate development relating to the group's business that has not been previously announced, or any rumour or report concerning the business that may account for the unusual market activity," said DVM Technology in its reply to Bursa Malaysia's UMA query yesterday evening.

Last week, filings revealed that The Goldman Sachs Group Inc expanded its shareholding in DVM Technology after it acquired 2.47 million shares from the open market.

The Goldman Sachs Group now have more than 14 million DVM Technology shares, representing 7.25 per cent stake in the company.