FROM a subdued position with its share price pressed down to an intraday low of 37.5 sen amid thinner-than usual volume which is in tandem with current bearish market trend, Serba Dinamik Holdings Bhd has suddenly risen to re-claim its most active counter spot.

At the close of today’s mid-day trading, the global integrated oil & gas (O&G) service provider was up 4.5% or 11.84% to 42.5 sen with 138.64 million shares traded, thus valuing the company at RM1.58 bil.

Apparently, strong buying interest emerged after the share prices failed to break its technical support at 38 sen

As market sentiment remains weak due to political instability, investors are very much expected to look for short-term buying opportunity by leveraging the bottom fishing method.

Yesterday, the company’s head honcho Datuk Mohd Abdul Karim Abdullah has denied claims of audit discrepancies amounting to RM4.54 bil which have been widely circulated in numerous reports.

“Everyone has read the information wrongly; the RM4.54 bil consists of items that shouldn’t be added together. You cannot add costs and revenue together which is how the figure has been derived. This goes against financial literacy,” he was quoted as saying by the Free Malaysia Today (FMT) portal.

“Perhaps, people are intentionally trying to sabotage us by exaggerating the numbers. We are not ruling this out.”

Former external auditor KPMG PLT had flagged the RM4.54 bil worth of transactions while consolidating the Serba Dinamik group’s statutory account for its FY2020.

The ‘exaggerated’ figure has appeared in numerous reports about Serba Dinamik’s ongoing legal dispute with KPMG which the company claims had led to the surfacing of several trivial issues that have since been responded to.

On April 12, Serba Dinamik’s board was unable to approve the company’s 2020 accounts after KPMG refused to complete its independent audit until issues it raised were addressed.

In a related development, Abdul Karim said that even after the Serba Dinamik management had answered KPMG’s queries, the firm declined to continue its audit.

“Among the issues raised to the board were ‘trivial’ audit issues which our management responded to,” he insisted.

These issues included the inability to verify documents because auditors went to the wrong address and a receptionist’s failure to confirm a staff member’s existence. – Aug 3, 2021

https://focusmalaysia.my/will-serbas-strong-rebound-hold-water-amid-lacklustre-market-sentiment/