At least three brokerage firms – Apex Securities, Kenanga Investment Bank and CGS International – have implemented cash upfront requirements for these counters starting today, according to a report in The Edge.
“Effective June 28, there will be a suspension of share buying for the following counters: Artroniq, Artroniq-WA, APB, Notion, Notion-WD,” Apex Securities informed its clients in a note.
Clients will be temporarily prohibited from buying these shares unless they have the full cash amount available in their accounts at the time of the transaction, the broker said.
Kenanga said the cash upfront requirements were imposed for non-margin accounts.
While Notion VTec’s share price has rocketed up this year, it is the reverse for YNH Property, Artroniq and APB which have faced heavy selling pressure this year.
Electronics manufacturing services provider Notion VTec has surged 613.8% year-to-date (YTD). It ended up two sen or 1% at RM2.07 today, valuing the group at RM1.07 billion.
The company was slapped with an unusual market activity (UMA) query by Bursa Malaysia last month after its share price surged to RM1.98, at the time the highest level since April 2010. Notion VTec attributed the surge to strong financial recovery, a sector turnaround, and positive analyst outlook.
Déjà vu?
Property developer YNH’s shares have been pummeled this year and is down 87% YTD. Its largest shareholder and chairman, Yu Kuan Chon, was sued for alleged market rigging and manipulation by the Securities Commission (SC) recently.
Information and communications technology company Artroniq’s share price has crashed 76% YTD while APB, which fabricates equipment for the oleo-chemical, and oil and gas industries, has tumbled 36.4% this year.
This is the second time this year that YNH, Artroniq and APB have been singled out in this manner by brokers. During the small cap sell-off on Bursa Malaysia in January, these counters were also placed on the cash upfront list by brokers and investment banks.
The January bloodbath, which hit about 20 stocks, saw a new name coined for them – the Limit Down Club. It also prompted the SC and Bursa Malaysia to issue a joint statement to allay concerns among investors over the sell-off.
The key question on investors’ minds is whether the latest cash upfront requirement by brokers portends another sell-off on Bursa Malaysia.