Bursa urges caution as Mega Fortris rout deepens

KUALA LUMPUR: Bursa Malaysia Securities has issued a trading reminder for Mega Fortris Bhd following a steep decline in its share price, urging investors to proceed with caution due to unusual trading activity persisting. The exchange drew attention to the security seals manufacturer's precipitous drop in share price and its response to an unusual market activity (UMA) query on October 30th.

Mega Fortris stated in its reply to the UMA query that it was unaware of any recent corporate developments, rumors, or reports explaining the unusual trading activity, aside from a previously disclosed court order. The company also expressed its inability to determine if the court order had any connection with the share price fluctuations.

Despite the company's response, Bursa Malaysia reported that unusual activity and price movements continue to persist in Mega Fortris' shares. The exchange advised investors to weigh all available information before making investment decisions concerning Mega Fortris shares. The reminder followed Mega Fortris' continued decline for a third consecutive trading day, falling 49 sen, or 26.78%, to RM1.34 by the midday break.

The stock had earlier plummeted as much as 28.42%, or 52 sen, to an intraday low of RM1.31. Friday's decline marked another tough session for the company, with its shares having nearly quadrupled in value earlier this year before the rally abruptly ended. Mega Fortris commenced 2026 at 87.5 sen, surging 294.29% to a record closing high of RM3.45 on October 27 and 28.

Since then, its shares have plummeted 61.16% in seven trading days, erasing approximately RM1.78 billion in market value. Its market capitalization has dwindled to about RM1.14 billion from RM2.92 billion on October 28.