KUALA LUMPUR (Sept 30): Hengyuan Refining Company Bhd (KL:HENGYUAN) fell over 20% in morning trade on Wednesday, prompting a suspension in the intraday short selling of the stock.
The counter fell as much as 92 sen to RM3.42 from Tuesday’s close of RM4.34, nearly erasing gains made by the petrochemical company in the last two weeks. Hengyuan pared its losses to close at RM3.56 — down 78 sen or 18% from the previous day — giving it a market capitalisation of RM2.14 billion.The stock is still up over 360% year-to-date.
The suspension was automatically triggered after the stock fell more than 15% from its reference price. Intraday short selling of the stock will resume at 8.30am on Thursday, according to Bursa Malaysia’s special announcement.
Hengyuan said it had no comment in response to The Edge.
Hengyuan is one of Malaysia’s key oil refiners, operating a refinery in Port Dickson with a production capacity of up to 120,000 barrels per day.
Oil prices have retreated from above US$100 a barrel amid signs of recovering Middle East exports that have eased some concerns over continued supply disruptions.
The stock surged to a four-year high of RM4.54 on Sept 24 thanks to a sharp turnaround in second-quarter profit and the resumption of dividend payments after a four-year hiatus.
Further, Hengyuan renewed its product supply agreement with Shell Malaysia for another 10 years, covering 2027 to 2036. The agreement will run for an initial five years from 2027 to 2031, with an option to extend for another five years from 2032 to 2036, subject to mutual agreement.