Medicine firm soars on sale rumour

PUBLISHED : Thursday, 03 April, 1997, 12:00am
UPDATED : Thursday, 03 April, 1997, 12:00am

Chinese medicine retailer Nam Pei Hong soared 88.23 per cent yesterday as rumours swirled that shareholder Tung Fong Hung was poised to conclude the sale of its 29 per cent stake.

Tung Fong Hung, whose shares rose 7.04 per cent on the speculation, issued a statement through the stock exchange, saying the talks on the sale had not been finalised. It said it knew of no reason for the gains.

Nam Pei Hong ended 37.5 cents firmer at 80 cents, while Tung Fong Hung added 2.5 cents to 38 cents.

Brokers said there were suggestions Tung Fong Hung, which also sells Chinese medicines, might merge its business with Nam Pei Hong.

A broker said the magnitude of the movements suggested the rumours should not be dismissed.