Zetrix plunges 42% despite denying link to Saravanan

Zetrix AI Bhd's shares experienced a significant decline of 42%, or 12.5 sen, dropping to 17 sen shortly after the market opened. Despite the company denying any link to former human resources minister M Saravanan's corruption case, the stock continued to plummet, closing at 26.5 sen, valuing the group at RM2.14 billion. This represented the most active trading session for Zetrix on Bursa Malaysia, with a staggering 1.74 billion shares traded, a tenfold increase from the average daily volume.

Last Friday, Zetrix shares had hit a limit down after falling 50.4% to 29.5 sen, prompting Bursa Malaysia to suspend intraday short-selling of the stock. Over the past three trading days, Zetrix shares had declined by 55%, erasing approximately RM2.61 billion from its market capitalisation. When asked about the unusual trading activity, the company clarified that there were no connections between Saravanan, who was charged with corruption in 2022, and Zetrix AI Group.

The company emphasized that any rumors or speculation linking it to the three graft charges were unfounded, and stated that they were unaware of any connection between the charges and the company's business affairs. Zetrix AI Bhd, founded in 2000 by group managing director Wong Thean Soon, was previously known as MyEG Services Bhd.

It transitioned into a global technology infrastructure group in July last year, with Wong being the largest shareholder at 29.25%. Other major shareholders include CIMB Group Holdings Bhd and KWAP.