KUALA LUMPUR (Nov 5): A lawmaker has raised concerns over the volatility of Genting Malaysia Bhd’s (KL:GENM) stock price this year ahead of the privatisation announcement.
Bakri Member of Parliament Tan Hong Pin noted that the stock hit a one-year high of RM2.48 on Feb 18 before a 42% drop to RM1.46 on April 9. Genting Malaysia gradually recovered to RM2.14 on Oct 10. Three days later, trading in the shares was suspended to facilitate the announcement.
“This pattern raises questions about whether there were any suspicious trading activities or use of insider information that should be investigated by the SC (Securities Commission Malaysia),” Tan said.
He said many retail investors had bought shares above RM3, with some holding them since earlier periods when the stock traded above RM6 at its historical peak, urging the Finance Ministry and SC to fairly and transparently assess the actual impact of the privatisation on public investors.
In response, Deputy Finance Minister Lim Hui Ying said the sharp movements in Genting Malaysia’s stock during the period were due to material developments within the company, as well as external factors affecting market sentiment and performance.
“For instance, between late February and early April 2025, Genting Malaysia’s share price declined significantly following the release of its fourth-quarter financial results, its weakest performance in four years,” she said.
The stock’s movements during the period were also affected by global market turmoil over a series of US trade policy flip-flops.
Lim said that the price movements indicated that investors and shareholders had sufficient information to make informed investment decisions.
“However, if any trading misconduct, including insider trading, is detected and proven, appropriate action will be taken,” she stressed.
For more Parliament stories, click here.