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No reason to dump Hiap Teck - Koon Yew Yin
Koon Yew Yin
3-4 minutes
Yesterday Hiap Teck dropped from 65 sen to close at 57 sen, a drop of 8 sen. The total volume traded was 136 million shares. I have not seen any stock traded with such a big volume before. I cannot find reasons why Hiap Teck should plunge 8 sen yesterday as shown on the price chart below.
Hiap Teck has 35% share of Eastern Steel Sdn Bhd (ESSB) and the controlling shareholder is Beijing Jianlong Heavy Industry Group Co., Ltd. which is one of the largest steel producers in China. ESSB can produce steel cheaper in Malaysia than in China and USA because our electricity is much cheaper.
Despite the recent steel price correction, steel price in Malaysia is much cheaper than that in China and in USA as you can see the 3 price charts below for comparison.
Iron ore price in Malaysia is Rm 5,200 or US$ 124 per metric ton. Iron ore price in China was US$ 220 per metric ton before the recent crash. Iron ore price is US$222 per metric ton in USA.
I cannot find reasons why Hiap Teck should plunge 8 sen yesterday.
https://klse.i3investor.com/blogs/koonyewyinblog/2021-10-28-story-h1592920548-No_reason_to_dump_Hiap_Teck_Koon_Yew_Yin.jsp
