Why did Tanco Holdings shares plunge 60 per cent?

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Tanco Holdings Shares Experienced a Significant Plunge Without a Single Explicitly Stated Cause

Tanco Holdings Bhd shares experienced a severe 60 per cent decline on Thursday, marking the steepest single-day drop since its listing 39 years ago. The stock hit its maximum daily limit-down within the first 30 minutes of trading and continued a trend of sharp losses over four consecutive sessions. While the company had recently announced plans for data centre development and its managing director engaged in share trading, the provided information does not pinpoint a definitive reason for this dramatic market reaction.
Steepest One-Day Decline in Company History

On Thursday, Tanco Holdings Bhd shares saw a dramatic 60 per cent fall, reaching its highest single-day percentage decrease since its initial public offering 39 years prior. The stock reached the maximum 30 sen limit-down within the first half-hour of trading, extending a pattern of significant losses over the preceding four trading days. Following this sharp decline, the share price settled at its floor of 20 sen, with over 205 million shares changing hands.
Significant Reduction in Market Capitalisation

This substantial share price drop has led to a considerable erosion of Tanco's market capitalisation. As of Thursday, the company's market value had fallen to approximately RM1.22 billion, a stark contrast to its peak exceeding RM10 billion recorded on June 3. This decline follows a period where the stock had previously experienced a surge of more than 600 per cent since the beginning of 2024.
Managing Director's Share Transactions Amidst Volatility

During this period of market volatility, Tanco’s managing director, Datuk Seri Andrew Tan Jun Suan, was involved in trading the company's shares. Exchange filings indicated that on June 10, he acquired 15.27 million shares at RM1.05 through a direct business transaction. On the same day, he also sold two million shares on the open market at a price of 50.7 sen per share.
Recent Corporate Developments and Regulatory Scrutiny

In the days leading up to this significant market downturn, Tanco had announced its intention to explore data centre development. This exploration is to be conducted through a memorandum of understanding with China Mobile International Ltd, with plans for a proposed 50MW facility in Port Dickson. The company has also faced scrutiny from Bursa Malaysia on two occasions this year concerning unusual trading activity. Previously, Tanco had attributed earlier surges in its share price to media reports about a proposed container port project, while stating there were no undisclosed corporate developments at the time.

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Why did Tanco Holdings shares plunge 60 per cent?

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