KUALA LUMPUR (Jan 19): The persistent sell-off among small-cap stocks sweeping across Bursa Malaysia has resulted in RM7.1 billion in market capitalisation lost among 13 of the worst-hit companies since the start of the year.

The losses came after a short, aggressive rally in some of the companies in the first week of 2024, with the run in share prices extending up till Monday (Jan 15).

These 13 companies were the ones whose shares plunge either hit limit-downs, drew unusual market activity (UMA) queries from the bourse regulator, or triggered the freezing of their intra-day short-selling (IDSS). 

Of the 13, 10 hit limit-downs at least once this week, while 11 received UMA queries, and five had their IDSS halted at least once.

The biggest losers were Rapid Synergy Bhd, YNH Property Bhd and Imaspro Bhd - companies linked to investor Datuk Dr Yu Kuan Chon - which have lost a combined market capitalisation of RM5.14 billion since the start of this year.

Based on Yu’s shareholdings of 29%-32% in the companies, his paper losses totalled RM1.32 billion.

Two investors saw their net worth dive by almost RM300 million in the period.

One is Leform Bhd’s group MD Law Kok Thye, who has a deemed interest of 81% in the company. Law saw a paper loss of RM295.6 million this year, just from Leform charting three days in the red since Jan 16.

The other is Tan Sri Ikmal Opat Abdullah, who has a deemed interest of 30.11% in Widad Group Bhd, whose shares shed 30 sen or 61.22% on Thursday (Jan 18), losing RM913.5 million worth of market value in a single day. The paper loss attributable to Ikmal Opat, its executive chairman, was RM275 million.

Mercury Securities Group Bhd’s largest shareholder Chew Sing Guan, meanwhile, saw RM92.8 million in paper loss due to the sell-off on the counter that started on Jan 16. Shares of the company, which debuted on the ACE Market just last September at 25 sen apiece, rallied from November to a high of 88.5 sen on Jan 15, before the meltdown. The stock closed at 41.5 sen on Thursday.

Another stock that was hit by the widening sell-off on Thursday was Tanco Holdings Bhd, which had just touched its five-year high of 65.5 sen on Tuesday after climbing steadily over two years since late April 2021, when it was only trading around 5.5 sen then.

Tanco's sudden drop - it closed 14.5 sen or 22.14% lower at 51 sen on Thursday - resulted in its market cap dropping RM291.38 million to RM1.02 billion from RM1.32 billion. This leaves its largest shareholder and group managing director Datuk Seri Andrew Tan, who controls 50.76% in the company (11.56% direct and 39.2% indirect) with a paper loss of RM77 million.

Jentayu Sustainables Bhd’s largest shareholder and chairman Datuk Beroz Nikmal Midin, who has a deemed interest of 18.89% in the company, saw a paper loss of RM36.1 million this year, as a result of the selling that hit the company since Jan 16.

Prior to that, the Sabah-based hydro power plant owner's share price had been trending upward for about 19 months since May 2022, from 33 sen to RM1.32 on Jan 5 this year. 

https://www.theedgemarkets.com/node/697907