KUALA LUMPUR, June 15 (Bernama) -- Bursa Malaysia’s key index advanced at Monday’s close, tracking gains across regional equities as geopolitical risk sentiment improved following an interim agreement between the United States and Iran to reopen the Strait of Hormuz, said analysts. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 7.76 points, or 0.46 per cent, to 1,691.39 compared with last Friday's close of 1,683.63. The key index opened 6.76 points higher at 1,690.39 earlier today and moved between 1,688.04 and 1,697.48 throughout the session. Market breadth was positive, with gainers outpacing losers 789 to 483, while 467 counters were unchanged, 1,034 untraded and 36 suspended. Turnover surged to 5.02 billion units worth RM3.91 billion from 2.79 billion units worth RM2.31 billion last Friday.
Shares of Tanco Holdings plunged sharply after a temporary price floor was removed, triggering a renewed wave of selling pressure.
Sharp Sell-Off Resumes
The stock fell as much as 40% intraday to 12 sen, its lowest level in nearly 29 months, before recovering slightly.
- Last traded: 14.5 sen
- Volume: 284 million shares traded
- Among the most active counters on Bursa Malaysia
Key trigger: The lapse of an exchange-imposed lower-limit floor, which had briefly stabilised the stock.
From High Flyer to Collapse
Tanco’s recent volatility has been extreme:
- +600% rally since 2024
- Peak market cap: >RM10 billion (June 2026)
- Current market cap: ~RM889 million
More than 90% value wiped out in days, marking one of the sharpest reversals in recent Bursa history.
What Caused the Volatility?
Several factors contributed to the sharp swings:
- Speculative momentum-driven rally
- Exchange queries on unusual trading activity
- Rapid sentiment reversal after price surge
The stock had previously hit limit-down levels for four consecutive sessions, prompting Bursa Malaysia to temporarily freeze the lower trading limit.
Corporate Developments Add to Attention
Tanco recently announced:
- A data centre initiative via MOU with China Mobile International
- Exploration of a 50MW facility in Port Dickson
However, the company has denied undisclosed developments, and management is currently reviewing the latest price drop.
Key Takeaways
- Tanco’s collapse highlights risks of speculative-driven rallies.
- Removal of trading limits can accelerate downside volatility.
- 90% drawdown underscores fragility of momentum stocks.
- Corporate announcements alone may not sustain valuations without fundamentals.
- Investors should remain cautious of unusual trading activity signals.
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