Tanco MD ups stake while group says it has no idea what's driving down its shares

• "The board is not aware of any possible explanation to account for the trading activity,” Tanco said in a reply to the unusual market activity query issued by Bursa Securities following the steep decline in its share price.

KUALA LUMPUR (Jan 18): Tanco Holdings Bhd, whose share price suddenly tumbled as much as 26.72% on Thursday and prompted Bursa Securities to suspend the counter's intraday short selling, said it is not aware of any corporate development, rumour or report that may have triggered the sharp fall.

"The board is not aware of any possible explanation to account for the trading activity,” Tanco said in a reply to the unusual market activity query issued by Bursa Securities following the steep decline in its share price.

The property developer said its only recent corporate development — announced on Monday — was the approval it obtained from the Malaysia Marine Department, on behalf of the Ministry of Transportation, for its 79%-owned Midports Holdings Sdn Bhd to develop a smart AI container port in Negeri Sembilan.

Its share price, which dropped 17.5 sen or 26.72% after the opening bell on Thursday to 48 sen, settled at 51 sen during market close, for a net decline of 22.14% or 14.5 sen from Wednesday's close. The tumble in its share price wiped out all the gains it accumulated since October last year. Just Tuesday, the stock hit its five-year high of 65.5 sen.

The counter saw 66.59 million shares change hands throughout the day — over twice its average volume of 28.11 million shares over the last 200 days.

At 51 sen, the company has a market capitalisation of RM1.02 billion, down RM291.38 million from RM1.32 billion on Tuesday.

The company's single largest shareholder is its group managing director Datuk Seri Andrew Tan Jun Suan, who bought 12 million shares representing about 0.59% in the company from the open market on Thursday as the share price tumbled. He now has a direct 11.56% stake in Tanco and an indirect 39.20% stake held under TJN Capital Sdn Bhd.

Tanco posted a net profit of RM212,000 in the first quarter ended Sept 30, 2023 (1QFY2024) versus a net loss of RM1.27 million in 1QFY2023, thanks to higher revenue from its construction and business consulting services, while revenue increased 23.4% to RM26.3 million from RM21.31 million.

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