‘Everyone’s trading in the dark’: Tuas investors still in limbo as shares whipsaw
The telco has just witnessed a two-day price swing seldom seen by an ASX 200 company. All shareholders say they can do is hold and hope.
Before anyone had time to work out if Tuas’ 63% selloff on Monday was some kind of ASX record, the stock hit back nearly 20% on Tuesday, marking one of the most jaw-dropping two-day swings in recent memory.
The initial $2 billion nosedive was set in motion by a brief update by the telecoms business, explaining that the Singaporean telecoms regulator had suspended its review of Tuas’ proposed buyout of M1 due to a possible breach of its Telecommunications Act.
But the ensuing rush out of the stock — which opened at $6.10 per share on Monday and closed at $2.67 on Tuesday — was “completely uninformed”, according to Ron Shamgar, head of Australian equities at TAMIM Asset Management, which owns the stock.
“It could literally go from the worst-case scenario, which means that it should actually trade more like $1 because it’s game over, lights out, and you sell it for the cell towers and cash,” said Shamgar.
