Daiman Development Bhd (-ve)

TRADING in the shares of Daiman Development (fundamental: 2.25/3, valuation: 2/3) triggered our momentum algorithm yesterday for the first time this year.

The stock saw 1.73 million shares traded, compared to its 200-day average of 25,061.

The property developer said on Monday that its major shareholders have requested that it undertake a selective capital reduction and repayment at RM3 a share. The privatisation offer is from joint offerors Tay Kia Hong & Sons Sdn Bhd and Daiman Holdings Sdn Bhd.

On Tuesday, the stock hit limit-up after its shares rose as much as 65 sen or 30% to RM2.82 following the announcement of the privatisation offer.

The stock closed unchanged at RM2.82 yesterday, giving it a market capitalisation of RM593.82 million. From a year ago, the stock is about 29% higher.