KUALA LUMPUR, July 14 (Bernama) -- Bursa Malaysia extended its rally to close more than one per cent higher on Tuesday, lifted by strong buying interest in oil and gas as well as banking counters as investors positioned for potentially firmer energy prices following renewed hostilities between the United States and Iran. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) surged 21.50 points, or 1.26 per cent, to close at its intraday high of 1,719.94 from Monday’s close of 1,698.44. The benchmark index opened 1.25 points higher at 1,699.69, and slid to its intraday low of 1,698.21 in the early session. On the broader market, losers led gainers 548 to 538, while 585 counters were unchanged, 1,031 untraded, and 22 suspended. Turnover expanded to 3.52 billion units valued at RM2.75 billion from 3.09 billion units valued at RM2.23 billion on Monday.
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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