KUALA LUMPUR (Sep 17): APB Resources Bhd’s (KL:APB) share price hits limit down just after the first hour of trading on Tuesday morning, extending recent losses from the steep sell-off in Globetronics Technology Bhd (KL:GTRONIC) last week.
APB fell as much as 30 sen or 29.7% to 71 sen, triggering a temporary suspension in intraday short selling (IDSS) of the stock for the rest of the day.
Since last Tuesday (Sept 10), the same day that Globetronics announced KPMG's departure and its shares dived over 30%, IDSS of APB shares had been suspended for three times.
Since Sept 10, APB had lost 68 sen or 45.38% and is now at its lowest since May 23, 2022. At its current price point, APB has a market capitalisation of RM80 million.
The counter saw close to 4.14 million shares changed hands on Tuesday's morning session, more than 11 times the 200-day moving average.
One market watcher has attributed the sharp sell-down of APB shares to margin calls on one prominent investor who had warehousing activities on Globetronics and APB.
Fears that investment banks may further tighten credit limits on the counters via margin cap reductions is the other reason as investors rushed for exit.
APB acquired its 70 million shares or a 10.36% stake in Globetronics for RM140 million or RM2 per share back in February. This was already a premium to the RM1.50 trading range of Globetronics shares at the time.
Based on Globetronics' last traded price of 53 sen, APB's stake would be valued at RM37.1 million, representing a paper loss of RM102.9 million for the engineering process equipment manufacturer.
APB’s largest shareholders include Kenanga Growth Fund with a 6.96% stake, while Datuk Koon Poh Tat, co-founder and executive director of Press Metal Aluminium Holdings Bhd (KL:PMETAL), has a 5.73% stake in APB and Chan Yok Peng has 3.79%.
Major shareholders of Globetronics include Ooi Keng Thye with an 11.39% stake while the Employees Provident Fund and Lembaga Tabung Haji are no longer substantial shareholders after selling out on Sept 10.