Shares of Central Global Bhd (CGB) experienced a decline during the trading session on Bursa Malaysia this morning.
The stock traded stronger when it hit RM2.60 as soon as the trading session opened, jumping by 13 sen or 5.26%.
However, the buying momentum did not last long. At 11.15am, CGB shares declined 13 sen or 5.26% to RM2.34 with 21.3 million shares changing hands.
Its trading volume is equivalent to 23% of its issued share capital of 91 million shares.
CGB is one of the potential ‘penny stocks’ in terms of stock price. Penny stock is a stock that is traded below RM1 on Bursa Malaysia.
The company recently received coverage after signing a memorandum of understanding (MoU) with Multi Scopes Sdn Bhd to explore the potential of forming a collaboration for a sewage treatment plant project in Selangor earlier this month.
According to CGB, the collaboration involves the engineering, procurement, construction, commissioning, operation and handover of a sewage treatment plant in Petaling Jaya.
Both parties have yet to finalize the project, according to a notification to the stock exchange.
In addition, CGB is also looking for opportunities to work with China -based firm Huobi Mall to build a database center in the country.
However, no MoU has been signed so far.
Before the news was reported, CGB shares had already tripled since the beginning of the year.
The company's shares rose 286% from 65 cents in early January.
Last April, Bursa Malaysia gave approval to CGB to offer 18 million new shares. The company has set the first 1 million shares to be sold at RM2 per share.
