KUALA LUMPUR: Bursa Malaysia Securities has suspended short selling of SP Setia Bhd's shares for the remainder of the day after its shares fell by more than 15 percent.
The company's stock declined by 24 sen, or 15.79 per cent, to RM1.28, compared to its previous closing price of RM1.52.
Short selling of SP Setia shares will resume the following trading day, Aug 16, 2024, at 8:30 a.m.
SP Setia yesterday reported a sixfold increase in net profit to RM295.03 million for the second quarter (Q2), up from RM43.06 million a year earlier, largely driven by higher land sales.
Despite the positive performance, RHB Research said SP Setia did report wider losses of RM101 million from its Battersea Power Station joint venture (JV) due to an income guarantee agreement for an office tower in Battersea Power Station.
The JV's agreement to sell an office tower in Battersea Power Station, which was newly completed in March, included some income guarantee for a period of five years.
The research firm said soft market conditions and the resulting low occupancy rates, led the JV to report a total loss of RM125 million.
This was also partially attributed to higher interest rates in the UK which raised the project's interest payments.
"Management acknowledged that the subsequent quarters may see similar results until the building's occupancy rates improve," it said.
For the six-month period ending June 30, 2024, SP Setia's net profit rose to RM372.36 million, compared to RM98.51 million previously, supported by higher revenue of RM2.97 billion, up from RM1.91 billion.