Tanco hits limit down, erasing RM3.9 bil over four-day losing streak

KUALA LUMPUR (June 8): Heavy selling emerged in the final hour of trading in shares of property developer Tanco Holdings Bhd (KL:TANCO) on Monday, extending the counter's losing streak to a fourth consecutive day as it hit limit-down.

Tanco shares fell 47 sen, or nearly 30%, to RM1.12 on Monday — their lowest level since Dec 24 last year — after reversing from an intraday high of RM1.62, making the stock the fourth-biggest loser on Bursa Malaysia for the day.

Trading volume came in at about 30.5 million shares, making it one of the most actively traded stocks on Bursa Malaysia.

Tanco’s sharp decline also prompted an unusual market activity (UMA) query from Bursa Malaysia Securities Bhd, its second such query in two months. As of the time of writing, the company had yet to respond to the regulator.

Intraday short-selling in the stock was also suspended after it fell more than 15% or 15 sen from its reference price. Intraday short-selling will resume on Tuesday (June 9) at 8.30am.

Notably, this marks the fourth straight day of losses for Tanco. Over the past four trading days, the counter has fallen a total of 64 sen from its close of RM1.76 on June 3, wiping out about RM3.9 billion in market capitalisation.

Tanco has been under regulatory scrutiny since April, when it received its first unusual market activity (UMA) query of the year following a sharp surge in its share price.

On April 20, the company explained that its gains were driven by media reports and market commentary on its proposed development of a smart AI container port in Port Dickson, known as Midport. It also denied any undisclosed corporate developments behind the unusual trading activity.

A month later, the company was again queried by the regulator over its joint venture with Hong Kong-based King Well Holdings Ltd (KWHL), which marked a potential pivot into the concrete products manufacturing business following a sharp spike in its share price.

At the time, Bursa asked Tanco to justify the JV, given its existing commitments, particularly the Midport project — which carries an engineering, procurement and construction contract worth up to RM3.5 billion — and the Port Dickson Free Zone development, for which Tanco is solely responsible for funding.

In its reply, Tanco said the JV would allow it to leverage KWHL’s extensive industry experience, reducing research and development time and costs. An in-house supply of concrete products — including large-sized sea piles critical for port construction — would also deliver immediate and long-term cost efficiencies while mitigating exposure to price volatility and supply disruptions.

According to AskEdge, Tanco shares were trading at a price-earnings trailing 12-month ratio of 1,052.5 times, while the stock was also trading at a price-to-net asset value ratio of 25.5 times.

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