Hexza Corp Bhd (+ve)

TRADING in shares of Hexza Corp Bhd (fundamental: 1.20/3. valuation 1.80/3), triggered our momentum algorithm yesterday for the second time this year.

The stock closed five sen or 6.62% higher at 80.5 sen, with 873,000 shares done, versus the counter’s 200-day average volume of 77,538 shares.

On Nov 1, Hexza announced that the High Court of Singapore has ordered a summary judgment in favour of the company in the litigation it brought against Singapore-registered Tembusu Industries Pte Ltd and its director and major shareholder Tin Maung Kyin to claim US$15.29 million (RM64.22 million), plus late payment interest and other costs, damages, interest and reliefs.

“The company will proceed to enforce the court order and work on the recoverability process. However, the amount of monies recoverable is not known at this juncture,” Hexza said in a filing to Bursa Malaysia.

Hexza initiated the litigation after the private company failed to pay the monthly lease rental for equipment under a January 2015 agreement.