month high after bank accounts release
Padini Holdings Bhd shares surged to a four-month high after the company announced that all its bank accounts were released by authorities. The company confirmed that no employees or directors were charged in connection with the investigation.
Why it matters
The resolution of legal uncertainty provides a significant boost to investor confidence and the company's market valuation.
BURSA SGX Home Hot Stock Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (July 17): Padini Holdings Bhd (KL: PADINI ) surged to a four-month high on Friday, after the apparel company announced that all of its bank accounts have been released by authorities.
The release removes operational and legal uncertainty weighing on Padini’s shares for months, CIMB Securities said. The absence of arrests, charges or forfeiture proceedings should also help investors price out the legal risks, the research house said.
“We view this development positively and believe it represents the best possible outcome for Padini at this stage,” CIMB Securities said, reiterating ‘buy’ call on the stock with target price of RM1.42.
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