Yesterday, CENTURY plunged sharply by 6.67% or 6.0 sen. All in, the stock has contracted 16.83% since the news of NESTLE’s demand of RM21.6m for purported losses and damages on 6 Aug. Although management had indicated that there is no basis for the claim, we decided to close our position on CENTURY given the uncertainty of the claims coupled with the high market volatility of late. With this disposal, we incurred a RM1,025 or 7.52% losses for each of the three portfolios in which we had 5,000 shares each.

Source: Kenanga Research - 13 Aug 2015