Quick take: Censof shares slip after forced selling of DNeX

KUALA LUMPUR: Censof Holdings Bhd’s shares slipped in early trade Thursday after brokerage-forced selling on its stake in Dagang Nexchange Bhd (DNeX).

The counter declined 10%, or 0.5 sen to 4.5 sen while DNeX fell 6.25%, or 0.5 sen to 7.5 sen with 4.8 million shares traded.

Censof has been forced by MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd to dispose of a 2.45% stake or 43 million shares in its associate company DNeX for RM3.92mil.

This comes as DNeX shares have plunged 62.8% since early this month amid heavy market selloff.

Censof said the forced selling action on Tuesday by MIDF had raised RM3.92mil for the company. The original cost of the investment was RM8.76mil.

Proceeds from the disposal, Censof said, will be used to reduce its share margin loan.

The disposal reduced Censof’s stake in DNeX by 2.45% to 13.2%, or 232 million shares.

The disposal has resulted in a loss of RM10.71mil at the group level and RM4.84mil at the company level given that the original cost of investment for the block of shares was RM8.76mil.

Source: TheStar