The beleaguered property developer fell 31.5 sen to an intraday low of 85.5 sen shortly after the opening bell.
This prompted Bursa Malaysia to suspend intraday short selling (IDSS) of the stock, like it did yesterday. Its IDSS will only be reactivated tomorrow at 8.30am.
Perak-based Lagenda managed to pare its losses in the afternoon session, falling 6.84% or eight sen to RM1.09 at 4.03pm, valuing the group at RM912.7 million.
Over the past three trading days, the stock has fallen some 58%, wiping RM528 million off its market capitalisation.
Yesterday, head of investments and investor relations Jasrinderjit Singh Dhillon said one of the company’s senior personnel had been remanded by MACC to assist in an ongoing investigation involving land dealings in Perak.
In a response to Bursa Malaysia’s unusual market activity (UMA) query, Lagenda said yesterday it was aware of news reports that MACC has been granted a four-day remand order involving a “senior personality” of the company.
Lagenda also assured shareholders and stakeholders the investigation is isolated from its business operation, and that operations remain unaffected by the development.
In a note, Apex Securities said the ongoing investigation has “indirectly tarnished the group’s reputation”. The research house also cut its target price to RM1.12 to account for perceived weak effective management practices.
In addition, it highlighted the need for proactive communication from management in addressing key stakeholders’ queries regarding financial impact, business operations and the group’s sustainability to restoring investors’ confidence.
The group is helmed by group managing director Doh Jee Ming, 44, who controls a 57.33% stake in the company, held mainly under his investment vehicle Lagenda Land Sdn Bhd.
On Tuesday, media outlets reported that MACC had remanded the managing director of a real estate company to assist in an investigation into the subdivision of Malay reserve land into non-Malay land in Sitiawan, Manjung, Perak.
Bernama reported Tuesday that a magistrates’ court in Perak issued a remand order against a male suspect in his 40s after allowing MACC’s application.