KUALA LUMPUR (July 17): Synergy House Bhd (KL:SYNERGY) received an unusual market activity (UMA) query from Bursa Malaysia on Wednesday after its shares suffered their biggest daily fall since being listed more than a year ago.

The shares fell as much as 36 sen or 26% to RM1.02, the lowest since April 12, 2024. The stock closed at RM1.07, valuing the furniture company at RM535 million.

While the decline trimmed Synergy House’s year-to-date gain to 56%, it is still 149% higher than its initial public offering price of 43 sen. The company was listed on the ACE Market on June 1 last year.

Synergy House's trading volume for Wednesday totalled 7.29 million shares, more than triple its 200-day moving average.

The sharp decline in price during the day, which began late in the afternoon session, also triggered a suspension in intraday short-selling, which automatically kicks in when the last done price of approved securities falls by more than 15% or five sen from the previous day’s price.

Intraday short-selling in Synergy House shares will be allowed to resume on Thursday at 8.30am.

In the UMA query issued after market close, the company was asked to state any possible explanation for the sudden volatility in its shares.

On June 13, Synergy House shares surged to a record high of RM1.85 after being appointed as an authorised service partner for an undisclosed US online home retailer.

Only two research houses — RHB Research and Rakuten Trade — are covering the stock, and both have issued a “buy” recommendation. The consensus 12-month target price is RM2.01, according to Bloomberg.

Synergy House Furniture Holdings Sdn Bhd, the private vehicle of the company's executive directors Tan Eu Tah and Teh Yee Luen, controls Synergy House with a 74% shareholding.