Velesto shares plunge 31% after 4Q loss

KUALA LUMPUR (Feb 28): Shares of Velesto Energy Bhd were actively traded on Tuesday as its stock price nosedived nearly 31% following the group posting a net loss of RM26 million for its fourth quarter ended Dec 31, 2022 (4QFY2022).

Velesto opened at 23.5 sen on Tuesday, a big drop from Monday’s close of 27.5 sen. At the end of the morning trading session, the counter had fallen by as much as 9.5 sen or 34.5% to its intraday low of 18 sen.

The stock, however, pared some losses while staying range bound for the remainder of Tuesday.

At the closing bell, Velesto was still down by 8.5 sen or 30.9%, as the counter settled at 19 sen, with 581.07 million shares traded, giving it a market capitalisation at RM1.53 billion.

It was the most active counter on Tuesday, followed by Hartalega Holdings Bhd and Gamuda Bhd.

On Monday (Feb 27), Velesto posted a net loss of RM26 million versus a net profit of RM5.43 million a year ago, as the bottom line was hit by higher operating expenses, finance costs and taxation.