KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
Shares of China Evergrande New Energy Vehicle fell 7% on Monday morning after individual creditors of two of its units sought court approval for bankruptcy proceedings and reorganization.
Key Points:
Creditors' Action:
- Creditors have filed for bankruptcy proceedings for Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong).
- The local court notified the units about the application on July 25.
Company's Response:
- The electric car maker stated that the notice significantly impacts the production and operations of the company and its relevant subsidiaries.
- The announcement was made in a filing to the Hong Kong bourse late Sunday.
Market Reaction:
- Shares of China Evergrande New Energy Vehicle dropped to HK$0.295 (RM0.18) after initially showing early gains.
- The stock has declined nearly 40% year-to-date.
Impact on Business:
- The bankruptcy proceedings and potential reorganization of the units could further strain the financial stability and operational capacity of China Evergrande's EV division.
The ongoing financial difficulties of China Evergrande's EV arm highlight the broader challenges faced by the parent company and its subsidiaries, as they navigate significant debt issues and operational disruptions.
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