KUALA LUMPUR: Zetrix AI Bhd shares rebounded 13.33 per cent to close at 8.5 sen amid speculative buying today, following months of heavy selling.
However, the cash-strapped technology group remains highly volatile after recent emergency talks with sukukholders failed to secure a waiver for a covenant breach involving its RM2 billion sukuk.
Prior to today's movement, forced selling from margin calls and an aggressive credit rating downgrade to junk status by MARC Ratings had wiped out over 90 per cent of Zetrix AI's market value.
An observer said the 13.33 per cent bounce is heavily technical, driven by speculative traders targeting a severely beaten-down stock.
Investor sentiment continues to process a massive corporate announcement where the board offered 788.83 million immediate-vesting employee share options, the observer added.
These options were priced at 5.4 sen,
representing a steep 28 per cent discount to the stock's baseline value which has created high speculative trading volumes.
Despite the stock recovery, the company faces structural headwinds.
Zetrix AI was recently suspended from its primary Road Transport Department collection role over RM314 million in unremitted government revenues.
This forced the company to scrap its upcoming dividend payouts to preserve operational cash.
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