KUALA LUMPUR (Oct 27): Sumatec Resources Bhd dropped as much as two sen or 25% after the company said its associate Semado Maritime Sdn Bhd defaulted on its RM143.32 million loan. Yesterday, Sumatec told Bursa Malaysia that Semado had taken the loan from Bank Pembangunan Malaysia Bhd. Sumatec said Semado's loan default happened on Oct 18 and 19 this year due to "delay in securing the completion of the sale of the vessels". Sumatec said Bank Pembangunan had taken legal action against Semado to recover the money. Today, Sumatec shares fell to their lowest so far at six sen. At 12:30pm, the stock settled at 6.5 sen for a market value of RM309.29 million.

Source: The Edge Markets October 27, 2016 05:05 UTC