Intraday short selling for NexG suspended

KUALA LUMPUR: NexG Bhd’s intraday short selling (IDSS) is suspended for the rest of the day following a sharp plunge in its share price.

The counter tumbled 28.04%, or 15 sen to 38.5 sen with 161.53 million shares traded at 3.51 pm.

Bursa Malaysia suspended the IDSS of the security as the last done price dropped more than 15 sen from the reference price.

The short selling under IDSS will only be activated on Aug 12 at 8.30 am.

NexG announced that it is purchasing a 32.61% equity interest and 414.31 million warrants in Classita Holdings Bhd for a total cash consideration of RM76.78mil.

BIMB Securities is neutral on the deal’s fundamentals as the near-term earnings impact is minimal, while long-term execution risk remains high given Classita’s volatile track record.

Nevertheless, the share price has rallied in recent months, with much of the perceived upside highly likely has been priced in.

“Hence, we are downgrading our call from ‘hold’ to ‘sell’, while keeping our target price at 45 sen based on 18x PER (+1SD above average 3-year forward PER) applied to FY26F diluted EPS of 2.5 sen,” BIMB said.