Tanco Holdings saw its share price collapse 60% in a single day , extending a brutal selloff that erased nearly RM10 billion in market value within days. What Happened Stock plunged 60% to 20 sen (limit-down) Marked 4th consecutive limit-down session Over 205 million shares traded in heavy selling Key point: One of the sharpest collapses in Bursa history after a massive speculative rally. From Boom to Bust Shares had surged 600% since 2024 Market cap peaked at ~RM10 billion (June 3) Now dropped to ~RM1.2 billion This is a classic parabolic rally followed by a rapid unwind. What Triggered the Selloff 1. Insider Trading Activity Raised Concerns Managing director sold shares near peak prices Bought and sold large blocks within days Mixed insider signals often shake investor confidence. 2. Speculative Momentum Faded Earlier rally driven by: Data centre story (50MW project with China Mobile) Market speculation When...
Global markets turned cautious as a sharp tech selloff and escalating US-Iran tensions weighed on sentiment, while Malaysia’s palm oil sector faced rising pressure from weak exports and intensifying regional competition.
Wall Street Slides on Tech Weakness and Geopolitics
US equities declined sharply, led by heavy selling in technology stocks:
- S&P 500 -1.62%, Nasdaq -1.98%, Dow -1.87%
- Super Micro Computer plunged 28% after a dilutive share placement
- Broad declines across chipmakers including NVIDIA, Advanced Micro Devices and Taiwan Semiconductor
At the same time, oil prices surged 3% to US$90+, as renewed military strikes heightened fears of inflation and prolonged high interest rates.
KLCI Holds Ground but Breadth Signals Weakness
Despite global volatility, Malaysia’s KLCI edged up 0.21%, supported by selective buying.
However, underlying sentiment remained fragile:
- Losers outpaced gainers nearly 2-to-1
- Weak breadth signals broad-based selling pressure beneath the surface
Palm Oil Sector Faces Demand Shock
The key domestic story lies in palm oil fundamentals:
- Inventories rose 5.2% to 2.43 million tonnes
- Exports dropped 14% to a one-year low
- Production declined 7% due to seasonal factors
The inventory build-up reflects weak demand rather than supply growth, driven by:
- Buyers switching to cheaper Indonesian palm oil
- Policy changes in Indonesia accelerating exports
Rising stockpiles highlight demand softness, which could pressure prices and margins near term.
Outlook: Short-Term Pressure, Medium-Term Support
While near-term headwinds persist, several factors could stabilise demand:
- Indonesia’s upcoming B50 biodiesel mandate
- Potential El Niño-driven supply disruptions
- Restocking activity as prices adjust
Stocks in Focus
- Maybank: Clarified no investigation; cooperating with authorities
- Gamuda: Expanding into renewable energy with Australia solar project
- Scientex: Profit growth supported by packaging segment resilience
Key Takeaways
- Tech-driven global selloff reflects valuation and geopolitical risks.
- Oil price spike may sustain inflation and delay rate cuts.
- Palm oil weakness is demand-driven, with exports falling sharply.
- Inventory build-up could pressure CPO prices in the near term.
- Structural demand drivers (biofuel, weather risks) may support medium-term recovery.
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