KUALA LUMPUR: The mispricing of Petronas Gas Bhd’s (PetGas) shares dragged the broader market down by as much as 1% yesterday before the error was rectified within a few minutes.
PetGas’ share price dipped as much as RM4.96 or 27% to an intraday low of RM13.36 at 10.18am before rebounding sharply to RM18 at 10.21am. By 10.31am, the stock was trading at RM18.26, Bloomberg data showed. Before the error, PetGas had been trading at a day high of RM18.48.
Fund managers said the error happened because the “wrong price was keyed in” during the trading session. “The sudden drop in the morning was due to a mistake in the price of PetGas, which slipped to a low of RM13.36, but recovered after that,” Choo Swee Kee, chief investment officer at TA Investment Management Bhd, told The Edge Financial Daily over the phone.
PetGas closed two sen or 0.1% down at RM18.30, giving the company a market capitalisation of RM36.21 billion. The stock has fallen 6% this year, underperforming the FBM KLCI, which has declined 3%.
The KLCI, which opened in positive territory, fell as much 14.63 points to 1,622.81 in intraday trade due to the mispricing of PetGas shares before the index recouped its losses. However, the 30-stock benchmark failed to post any gains when market closed.
The KLCI fell 1.46 points or 0.1% to close at 1,635.98 points, due to losses at bluechip stocks such as Malayan Banking Bhd, CIMB Group Holdings Bhd and British American Tobacco Malaysia Bhd (BAT).
On Bursa Malaysia, 802.56 million shares worth RM1.7 billion changed hands. Losers outnumbered gainers 412 to 254, while 258 counters traded unchanged.
Leading gainers were Petronas Dagangan Bhd, Hong Leong Capital Bhd and KLCC Property Holdings Bhd while the top losers were BAT and UMS Holdings Bhd. The most active stock was Patimas Computers Bhd.
According to TA’s Choo, local and regional market sentiment was affected by concerns over the US government’s spending cuts after Congress failed to reach an agreement on the budget reduction over the weekend.
Japan’s Nikkei 225 rose 0.4%, but South Korea’s Kospi and Australia’s S&P/ASX200 were down 0.66% and 1.49% respectively. Hong Kong’s Hang Seng Index fell 1.5%, while the Shanghai Composite Index slid 3.65% after China tightened mortgage rules to cool its property market.
Reuters reported that a sell-off in Chinese equities dragged Asian shares down sharply yesterday, as concerns over Beijing’s tightening of its property sector compounded weak sentiment already dampened by a patchy global growth outlook.
Last Friday, China said it could increase required down payments and loan rates for buyers of second homes in cities where prices were rising too quickly.
This article first appeared in The Edge Financial Daily, on March 5, 2013.