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...
US inflation tells a conflicting story — headline is too high, but core is cooling. This leaves the Federal Reserve in a difficult position with no clear policy direction.
The Core Dilemma
“The Fed is trapped because headline inflation is too high to cut rates, but core inflation is too soft to justify aggressive hikes.”
- Headline CPI: 4.2% YoY (elevated, driven by energy)
- Core CPI: 0.2% MoM (cooling, below expectations)
Key point: Inflation looks strong on the surface, but weak underneath.
What’s Really Driving Inflation
The spike is not broad-based:
- Energy surged:
- Gasoline +40.5% YoY
- Contributed over 60% of CPI increase
- Core components showed weakness:
- Goods prices declined
- Transport and insurance costs eased
This is an oil-driven inflation story, not demand overheating.
Why the Fed Can’t Move
No Room to Cut
- Headline above 4% = politically and economically sensitive
- Cutting now risks losing credibility on inflation
No Urgency to Hike
- Core inflation slowing
- No clear sign of broad inflation reacceleration
Result: The Fed is stuck in “wait and see” mode.
Market Reality Check
Despite softer core inflation:
- NVIDIA
- Microsoft
- Tesla
Tech stocks still sold off.
Why?
- No rate cuts to support valuations
- Oil keeps inflation risk elevated
- Market shifting away from high-multiple growth
Markets are trading oil risk, not inflation relief.
Positioning Shift
- Beneficiaries:
- Energy sector
- Gold (inflation + geopolitical hedge)
- Under pressure:
- Growth stocks
- Consumer sectors (fuel cost squeeze)
- Rate-sensitive assets
Rotation continues toward defensive and cash-flow names.
Key Takeaways
- Fed is policy-constrained — no clear easing path
- Energy is distorting inflation signals
- Core inflation is cooling, but not enough to change policy
- Markets remain fragile and headline-driven
- Oil direction will decide the next move in equities
Bottom Line
This is not a clean inflation story, it’s a policy trap.
Until energy pressures ease, expect the Fed to stay cautious and markets to remain volatile.
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