The Ups and Downs of Harvest Court
MASTERWORDSMITH UNPLUGGED
Recently, many speculators were rattled with the news that the 28-year-old son of our PM, Nazifuddin Najib, resigned from the board of Harvest Court Industries Bhd as independent director barely 25 days after he was appointed to the board on October 28th this year. Currently, he still owns 3.98 million Harvest Court shares.
Nazifuddin is the chairman of 1Green Enviro Sdn Bhd, Magna Healthcare Sdn Bhd, Cahaya Pedoman Sdn Bhd, Tribus Sdn Bhd and Sagajuta (Sabah) Sdn Bhd. He also the director of Kingtime International Ltd and Dynac Sdn Bhd.
According to The Sun:
Shares in designated counter Harvest Court Industries Bhd nose-dived yesterday in an apparent reaction to the resignation of former director Mohd Nazifuddin Mohd Najib on Monday, barely a month after his entry helped spark a massive surge in the stock.
At the close, Harvest Court’s share price tumbled 43 sen, or 31% to 97 sen on volume of 251,700 shares. Its warrants declined 30% to 73 sen.
Harvest Court attracted huge speculative interest earlier this month after Nazifuddin and business partner Datuk Raymond Chan were made directors of the company on Oct 28.
Investors were apparently punting on hopes that Nazifuddin, the 28-year-old son of Prime Minister Datuk Seri Najib Abdul Razak, would open up new opportunities for the door maker. Within days of his appointment, shares in Harvest Court had soared from 40 sen to as high as RM2.13 on Nov 14.
The massive surge immediately drawn close scrutiny from the investing public, as well as the stock market regulator.
Bursa Malaysia Securities flagged Harvest Court as a designated counter from Nov 15 in a bid to limit what was viewed as excessive speculative activities in the stock.
Nazifuddin’s decision to step down may help to take some heat off Harvest Court.
Nazifuddin, who owns 2.2% in Harvest Court, and Chan told a newspaper yesterday that they would remain as shareholders in Harvest Court. Chan controls 15.7% of Harvest Court.
The trading curb, which effectively requires investors to pay upfront to purchase the stock, continue to be in force. There was no indication how long this will remain.
