KUALA LUMPUR (June 15): Tanco Holdings Bhd (KL:TANCO) resumed its decline on Monday, barrelling towards its lowest in 29 months as a brief respite from a floor price set by the exchange lapsed.
Shares of Tanco fell as much as 40% or eight sen to 12 sen, its lowest since January 2024, before settling at 13 sen on Monday. More than 327 million shares changed hands.
The company is looking into the latest drop, Tanco group managing director Datuk Seri Andrew Tan Jun Suan told The Edge without elaborating further.
Tanco has been in the news for its meteoric rise since 2024 and its perilously steep fall that has now wiped out more than 90% of its market value in just days.
The stock ended flat last Friday following a move by the exchange to freeze the lower-limit price at the previous day’s closing price of 20 sen. The move came after the stock hit its maximum allowed decline in a single trading session for four consecutive days.
When a counter hits its lower limit price on a market day and repeats the same on the following market day, the exchange may lock the lower limit at that level rather than allowing it to reset lower.
Shares of Tanco have jumped more than 600% since 2024 in a rally that sent their value to over RM10 billion at its peak on June 3. Based on the last price, Tanco's market capitalisation has shrunk to just about RM828.1 million.
Tan has been trading the company’s shares over the past few days amid the selling frenzy, according to exchange filings.
Tanco has been asked twice this year by Bursa Malaysia to explain the unusual market activities in its shares.
On June 9, Tanco announced its entry into data centre development via a memorandum of understanding with China Mobile International Ltd to explore the development of a 50MW facility in Port Dickson, Negeri Sembilan — a day after the exchange’s latest query.
The company also drew the attention of the exchange on April 20, following an unusual price surge, though the company attributed it to news reports on a proposed container port project in Port Dickson and denied any undisclosed corporate developments.
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