Why Gamuda's Price Dropped from ~RM4.65 to ~RM4.03
🎯 Core Narrative: Why Gamuda's Price Dropped from ~RM4.65 to ~RM4.03 The recent sharp decline in Gamuda's share price was primarily caused by large-scale, mechanical short selling by investment banks (CIMB & JP Morgan) . This selling was not due to: Deterioration in Gamuda's fundamentals (order book remains strong at RM45.9bn). PNB losing faith (they remain a ~15% strategic holder). Market panic about the company's future. It was a direct, predictable result of delta-hedging related to PNB's USD 300 million exchangeable sukuk issuance. 🔧 Mechanics of Delta-Hedging (Step-by-Step) 1. The Transaction Structure (What Actually Happened) PNB created a Special Purpose Vehicle (SPV) called Lunas Capital II Ltd. . PNB pledged a block of its Gamuda shares (approx. 234.6 million shares) to the SPV as collateral. The SPV issued a sukuk (Islamic bond) that gives the holder the right (option) to convert the bon...