Aeon, the blue chip, one of my favourite Malaysian stocks, had dropped from about RM 16 to below RM 4. What has happened?
I quickly checked Bursa's website:
Same picture, Aeon's stock down by 75%.
Now it is getting strange, the share is indeed down a lot, but "only" around 50%.
And Wall Street:
Hmmm, nothing really happened, the price more or less going flat over the last year.
Checking Bursa's announcements site reveals the answer, a one-for-one bonus and a capital reduction from RM 1 to RM 0.50, so basically the share split in four.
If a bakery sells whole cakes for RM 20 and the next day decides to sell quarter cakes for RM 5, then the price not really fell by 75%, it stayed the same. A proper chart should reflect that.
Can The Edge, Bursa and Yahoo please update their charts?
Selamat Hari Raya to all Muslim readers and happy holidays to all.