Collectively these companies have seen RM78.53bil erased in value since GE14
BUMI Armada Bhd , an oil and gas services provider controlled by tycoon T. Ananda Krishnan, recorded the biggest decline in percentage terms as nervy investors sold down the shares over concerns of its cash flow situation.
The company has a US$500mil debt that needs to be refinanced by early next year.
In less than seven months from GE14, its value have slumped by 80.7% to a record low of 16 sen on Nov 30, giving it a market cap of 939.35mil. On May 8, it was traded at 83 sen for a market cap of RM4.87bil.
At its height some four years ago, Bumi Armada’s market capitalisation stood at close to RM12bil.
Astro Malaysia Holdings Bhd, another company controlled by Ananda, came under selling pressure after the Malaysian Communications and Multimedia Commission (MCMC) gave its approval for the live broadcast of the 2018 World Cup for free on RTM. Its shares fell to a low of RM1.11 on Nov 28 before it recouped some losses to settle at RM1.20 as at end November.
Over a one-third or RM3.28bil of its market cap was erased post election.
In recent weeks there has been much talk of a potential merger between Astro and telco Maxis Bhd , another company majority-owned Ananda. A merger of the two has merits given that both companies are facing intense competition on multiple fronts, say analysts.
Construction stocks were the worst hit following Pakatan Harapan’s move to review mega infrastructure projects that saw some projects being downsized, deferred or cancelled.
Leading the pack here was George Kent (Malaysia) Bhd, a company closely-linked to the previous Barisan Nasional government. George Kent saw its share price nose-dive by 74.6% in less than seven months since GE14.
As at Nov 30, the stock traded at RM1 for a market cap of 563.26mil.
Shares of Econpile Holdings Bhd and Gamuda Bhd lost more than half their value, while Gabungan AQRS Bhd , WCT Bhd and Ekovest Bhd by between 45% to 48%.
The share price of Telekom Malaysia Bhd (TM) plunged by 53.7% following the implementation of mandatory standard on access pricing, which saw lower fixed broadband prices.
That translated to a loss of RM10bil in market value in less than seven months post election. Fixed broadband service is one of TM’s core offerings where the bulk of its earnings come from.
The stock has since been dropped from the list of constituent stocks.
Multinational Lafarge Malaysia Bhd has been seeing waning investor interest owing to a supply glut in the cement industry and cost pressures which depressed its earnings in recent times. The share price of the country’s largest cement player halved over the period of this study to trade at RM2 as at Nov 30.
There was also a change of fortune in the cases of My EG Services Bhd and Datasonic Group Bhd - two stocks that are linked to the previous ruling party.
MyEG, which had in March risen to a high of RM2.89 had dropped to a low of 68.5 sen in June, before inching up to RM1.11 on Nov 30. Datasonic, meanwhile, traded at 45 sen as end Nov, after seeing a 53% decline in price.
Kretam Holdings Bhd , which was in the news after Hap Seng Plantations Holdings Bhd dropped its RM1.18bil takeover bid, shaved off 53% of its value as at end Nov. That was RM1bil loss in value.
In the steel sector, Ann Joo Resources Bhd saw its value slide by half as more headwinds are expected for Malaysian steel sector. This came on the back of an expected slower domestic demand as contractors held back from steel purchases on the heels of the surprise election outcome that threw various public infrastructure projects into limbo.
In the oil and gas sector, Sapura Energy Bhd ’s shares fell by 47% or RM1.88bil in value erased to trade at 36 sen on Nov 30.
In August, the loss-making company announced a cash call to raise up to RM4bil to support its future growth strategy and pare down debt.
Among government-linked companies, FGV Holdings Bhd saw a 45% drop in share price, while shares of Boustead Holdings Bhd fell by 42% since GE14.
Since GE14 to Nov 30, the Top 50 stocks had lost RM78.53bil in market value, or a decline of 45.7% from the total of RM171.93bil it was at on May 8, the research showed.
Bursa Malaysia’s biggest gainers and decliners
Top 50 gainers in absolute terms
GLCs and construction stocks among major losers
Top 50 gainers in percentage terms