KUALA LUMPUR: Shares of scandal-hit Magma Group Bhd staged a sharp rebound this morning after a bruising weeklong selloff that drove the Impiana KLCC Hotel operator to a five-month low.

The counter, which slumped to 21.5 sen yesterday, its weakest since March, opened one sen or 4.65 per cent higher at 22.5 sen, before surging as much as 18.60 per cent to 25.5 sen in active morning trade.

At press time, the Main Market-listed company was the most actively traded stock on Bursa Malaysia, with more than 30 million shares changing hands.

The rebound came after a 30 per cent plunge in Magma's shares on Monday amid news linking group executive chairman Datuk Seri Lee Hock Seng to an ongoing investigation into the controversial MBI International scheme.

Magma later clarified that Lee is assisting authorities in the probe but stressed that the matter "has no connection to nor does it involve the business or operations of the company or its subsidiaries."

Today's recovery follows a steep slide since Aug 18, which saw the stock nearly halve in value and erase most of its gains this year.

At the current price, Magma's market capitalisation stood at RM411.87 million, with the rebound trimming part of its year-to-date losses.

Formerly known as Impiana Hotels Bhd, Magma is engaged in hotel management, hospitality operations and property development. Its portfolio includes WOLO Kuala Lumpur, Impiana KLCC Hotel, Impiana Hotel Ipoh and Impiana Hotel Senai.