Mega Fortris, GIIB and Ni Hsin rebound on Bursa Malaysia after heavy sell-off

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Mega Fortris, GIIB & Ni Hsin surge

Highlights

Mega Fortris surged 29.73% to RM2.88, with a market capitalisation of RM2.43 billion and 17.67 million shares traded as of 3.30pm on Monday.
GIIB rose 34.72% to 48.5 sen, becoming the second most actively traded counter with 46.46 million shares changing hands and a market value of RM397 million.
After last week’s sharp falls, Mega Fortris, GIIB and Ni Hsin said no material corporate developments had caused the unusual activity and selling pressure.

This article was translated from the original. Read the original version by our correspondent here.

Share price recovery and trading activity

As reported by The Edge Malaysia, Mega Fortris was Bursa Malaysia’s top gainer as of 3.30pm on Monday after surging 66 sen, or 29.73%, to RM2.88 from RM2.22 at Friday’s close. At that price, the security seal manufacturer had a market capitalisation of RM2.43 billion and was also among the 15 most actively traded counters, with 17.67 million shares traded.

GIIB gained 12.5 sen, or 34.72%, to 48.5 sen, lifting its market capitalisation to RM397 million. The rubber compound manufacturer was the ninth-biggest gainer and the second most actively traded stock on Bursa Malaysia, with 46.46 million shares changing hands.

Ni Hsin added 5.5 sen, or 21.15%, to 31.5 sen after hitting an intraday high of 32.5 sen. At 31.5 sen, its market capitalisation stood at RM197 million, while 41.21 million shares were traded, making it the fourth most actively traded counter.

Datuk Ng is Mega Fortris’ non-independent non-executive chairman, with a stake of nearly 67%. He also owns approximately 15.823% of GIIB and 2.22% of Ni Hsin.

Last week’s selling pressure and company explanations

Last week, Mega Fortris fell 35.65%, or RM1.23, over Thursday and Friday, from RM3.45 to RM2.22, wiping out more than RM1 billion in market value. GIIB plunged 49.3%, or 35 sen, from 71 sen to 36 sen, while Ni Hsin dropped 48%, or 24 sen, from 50 sen to 26 sen.

Before the falls, all three stocks had already posted sharp gains in recent months. GIIB climbed from 11 sen at the end of April to 74 sen on 26 Oct, Ni Hsin rose from seven sen on 10 Aug to 50 sen on 28 Oct, while Mega Fortris surged from 76.5 sen in March to RM3.45 on 27 Oct.

The selling pressure prompted Bursa Malaysia to issue unusual market activity queries to all three companies. Mega Fortris said Ng and major shareholder Mega Fortris Global Pte Ltd had obtained a Kuala Lumpur High Court order against Affin Hwang Nominees Tempatan Sdn Bhd to obtain documents relating to transactions involving 17.74 million of its shares between 25 and 31 March 2026. However, the company said it could not determine whether the court proceedings were related to the recent share price decline.

Ni Hsin said the resale of five million treasury shares worth RM2.38 million on 26 Oct may have contributed to the high trading volume and decline in its share price, but it could not conclusively determine that the transaction had caused the recent trading activity. The company had also previously announced a proposed diversification into the electric vehicle business and a proposed bonus issue of up to 312.65 million free warrants.

GIIB said it was unaware of any corporate developments or rumours that could have triggered the unusual market activity. Separately, Ng bought 6.48 million GIIB shares on 29 Oct, increasing his stake from 15.038% to 15.823%.

In our Bursa Malaysia midday trading roundup, reported earlier we highlighted a list of counters identified as having negative momentum based on a proprietary algorithm that assesses unusual price and volume patterns. The article also stressed that these momentum indicators are merely signals of market movements (not buy or sell recommendations) and are typically temporary, while providing fundamental and valuation scores to help readers assess the counters concerned.

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