KUALA LUMPUR: Mega Fortris Bhd’s spectacular stock market rally has unravelled in just seven trading days, wiping out about RM1.75 billion in market value as its shares plunged 60 per cent from their record high.
The security seals manufacturer, whose shares had nearly quadrupled in value this year, suffered another bruising session on Friday, triggering a third consecutive intraday short-selling (IDSS) suspension.
At 10.08am, Mega Fortris was trading at RM1.38, down 45 sen, or 24.59 per cent, from Thursday’s closing price of RM1.83.
The latest plunge brought its market capitalisation down to about RM1.17 billion from RM2.92 billion on Oct 28, when the stock closed at an all-time high of RM3.45.
It marks a dramatic reversal for a counter that had been among the market’s standout performers this year.
Mega Fortris began 2026 at 87.5 sen before embarking on a remarkable climb that saw its shares surge 294.29 per cent to RM3.45 on Oct 27 and 28.
But the rally came to an abrupt halt on Oct 29, when the stock tumbled 71 sen, or 20.58 per cent, to RM2.74.
The selling intensified the following day, dragging the shares down to RM2.22 at last Friday’s close.
The stock staged a brief comeback on Monday, jumping 29.73 per cent to RM2.88, but the recovery proved short-lived.
By Wednesday, Mega Fortris had slipped to RM2.54 before suffering another steep fall to RM1.83 on Thursday.
Despite the collapse, its shares remain 50.5 sen, or 57.71 per cent, above their starting price for the year.
IDSS of Mega Fortris shares has been suspended for the remainder of today after the stock breached the prescribed price limit.
It will resume on Tuesday (Nov 10) at 8.30am as the market will be closed on Monday for the Deepavali public holiday.
The sharp decline follows a turbulent week for Mega Fortris and two other Bursa Malaysia-listed companies, GIIB Holdings Bhd and Ni Hsin Group Bhd, which have also suffered heavy selling pressure.
Ng, who chairs Mega Fortris and controls about 67 per cent of the company, holds a combined 15.82 per cent stake in GIIB, according to Bursa Malaysia data.
The Edge reported that Ng also held a 2.22 per cent stake in Ni Hsin, but checks on Bursa Malaysia’s shareholder data showed that he was no longer among the company’s 10 largest shareholders.
GIIB closed Thursday at 32 sen, down 9.5 sen, or 22.89 per cent, after rebounding to 50 sen on Monday.
Ni Hsin, meanwhile, fell 6.5 sen, or 25 per cent, to 19.5 sen on Thursday, having recovered to 34 sen earlier in the week.
The sharp swings prompted Bursa Malaysia to issue unusual market activity queries to all three companies.
In its response, Mega Fortris disclosed that Ng and substantial shareholder Mega Fortris Global Pte Ltd had obtained a court order seeking documents relating to transactions involving 17.74 million Mega Fortris shares between March 25 and 31 this year.
The company said it could not determine whether the court proceedings were linked to the recent share price decline.