KUALA LUMPUR (Nov 4): Mega Fortris Bhd (KL:MEGAFB) shares continued to slide on Wednesday, hitting an intraday low of RM2.07 and erasing significant gains from its two-day rebound earlier this week.
The security seals manufacturer pared some of its losses to close 11.5% or 33 sen lower at RM2.54 a share, with 12.3 million shares changing hands. At the last price, it is valued at RM2.146 billion.
The sharp decline prompted Bursa Malaysia to suspend intraday short selling in Mega Fortris for the remainder of the day. Short selling of the stock will resume on Thursday.
The latest sell-off follows a 35.65% plunge, or RM1.23, over last Thursday and Friday, when the stock fell from RM3.45 to RM2.22, wiping out more than RM1 billion in market value.
The stock subsequently staged a brief recovery on Monday, gaining 29.73% to RM2.88, before slipping one sen on Tuesday. However, Wednesday's sharp decline erased almost all the gains from the two-day rebound.
The weakness was also seen in two other companies linked to Mega Fortris chairman Datuk Ng Meng Kee, with GIIB Holdings Bhd (KL:GIIB) falling 16.16% to 41.5 sen and Ni Hsin Group Bhd (KL:NIHSIN) slipping 16.92% to 27 sen.
GIIB shares hit an intra-day low of 39.5 sen before paring some losses to close Wednesday at 41.5 sen, with about 35.7 million shares changing hands. At that price, the company has a market capitalisation of RM342.9 million.
Ni Hsin, meanwhile, closed 20% lower at 26 sen, near its intra-day low of 25 sen. The stock had fallen to 26 sen last Friday before staging a two-day recovery to 34 sen on Monday, only to retreat again on Wednesday.
Ng holds an almost 67% stake in Mega Fortris, alongside approximately 15.823% in GIIB and a 2.22% stake in Ni Hsin.
The selling pressure across the three companies last week prompted Bursa Malaysia to issue unusual market activity queries, seeking explanations for the sharp declines in their share prices.
In its response, Mega Fortris said Ng, its non-independent non-executive chairman, and substantial shareholder Mega Fortris Global Pte Ltd had obtained a Kuala Lumpur High Court order against broker Affin Hwang Nominees Tempatan Sdn Bhd, seeking documents relating to Safari Asia Ltd transactions involving 17.74 million of its shares between March 25 and 31, 2026.
Ni Hsin, meanwhile, said the resale of five million treasury shares for RM2.38 million on Oct 26 may have contributed to the high trading volume and decline in its share price.
GIIB said it was unaware of any developments or rumours that could have triggered the unusual market activity.
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Mega Fortris says major shareholders obtained court order to probe March share trades in response to UMA query
Ni Hsin says RM2.38m treasury share resale may have contributed to sharp sell-off
GIIB tells Bursa unaware of reason for sharp drop in share price