KUALA LUMPUR (March 11): Enterprise solutions provider and systems integrator Microlink Solutions Bhd's shares plunged to their lowest in more than two years while the stock exchange suspended intraday short selling activities on the stock on Monday afternoon.

The suspension was triggered after the counter dropped more than 15% or 15 sen from its reference price. The stock then hit its limit-down of 53 sen, which is also its lowest since November 2021.

Microlink’s intraday short selling will only be activated on Tuesday (March 12) at 8.30am, according to Bursa Malaysia’s special announcement.

The stock faced heavy selling pressure while volume spiked as the market resumed trading on Monday afternoon.

The counter closed 30 sen or 36% lower at 53 sen, giving the group a market capitalisation of RM568.37 million.

The stock was the fourth-largest loser on Bursa Malaysia, with 13.38 million shares changing hands, versus the 5.68 million shares of five-day volume moving average (MA), 6.3 million shares for 20-day MA, and 6.55 million shares for 90-day MA.

After market close, Bursa Malaysia issued an unusual market activity (UMA) query to Microlink asking the group to state any possible explanation for the sudden volatility in its shares.

Microlink is 9.9% controlled by the Sultan of Pahang, Al-Sultan Abdullah Sultan Ahmad Shah. He is the third largest shareholder, after Omesti Bhd’s 34.3% interest and Kenanga Islamic Absolute Return Fund 22.1% stake.

The group recently reported a RM3.37 million net loss for the third quarter ended Dec 31, 2023 (3QFY2024), its first quarterly loss in four years since 3QFY2019.

For the cumulative nine-month period, net profit declined 98% to RM467,000 from RM21.5 million in the previous corresponding period, despite revenue growing 12% to RM204.05 million from RM183.03 million.

The group attributed the weaker profitability to lower margin from its order fulfilments and effect from progress billings. The group said its board of directors remained optimistic of Microlink's performance in the current year with an “immediate return to financial profitability in the coming quarters”.