Zetrix AI plunges 50% in heavy trade, hits limit-down
Zetrix AI plunges 50% in heavy trade, hits limit-down The Edge Malaysia
Source: The Edge Malaysia · August 28, 2026 at 5:01 AM · AI-assisted report
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BURSA MALAYSIA, 28 AUGUST 2026 —
Zetrix AI Shares Plunge 50% in Heavy Trading, Hit Limit-Down on Bursa Malaysia
Market Impact
KUALA LUMPUR (Aug 28): Shares of Zetrix AI Bhd (KL: ZETRIX) collapsed by 50% in heavy trading on Friday, hitting the daily limit-down as the digital services firm’s market value halved.
The stock fell 30 sen—the maximum allowed decline for stocks priced below RM1—to 29.5 sen by noon, with over 800 million shares changing hands, making it the most actively traded counter on Bursa Malaysia. The sharp sell-off also triggered a suspension of intraday short selling for the remainder of the trading session.
Managing director Wong Thean Soon denied any issues at the company, stating that management was unaware of any investigations or irregularities. “All remains good at Zetrix, there is no issue with the company as far as the management is concerned,” Wong told The Edge Malaysia. “As far as we are concerned there is no investigation on Zetrix and everything is in order at the company.”
Zetrix AI’s decline comes amid its ties to HeiTech Padu, the main contractor for the government’s National Integrated Immigration System (NIIS) project. Wong holds a 0.97% direct and 16.9% indirect stake in HeiTech Padu, while Zetrix AI has a collaboration agreement with the firm on government technology projects.
HeiTech Padu’s largest direct shareholder is Rosetta Partners Sdn Bhd, an investment vehicle linked to Sultan Muhammad V of Kelantan, which owns a 23.61% stake.
The stock’s plunge follows Zetrix AI’s announcement of a 35% rise in second-quarter profit, driven by contributions from AI and blockchain segments, along with a 0.25 sen dividend declaration.
Malaysia Market Impact
The dramatic sell-off reflects heightened volatility in Malaysia’s tech sector, particularly among firms with government-linked contracts. The limit-down move underscores investor caution amid broader market uncertainty. Analysts suggest the decline may prompt a reassessment of risk exposure in small-cap tech stocks, especially those with exposure to public sector projects.
Sector and Company Specifics
Zetrix AI operates in digital services, with a focus on AI and blockchain solutions. Its collaboration with HeiTech Padu positions it strategically in government digital transformation initiatives, including immigration systems. However, the sharp decline raises questions about investor confidence in such partnerships, particularly given the regulatory and operational risks associated with large-scale government contracts.
Outlook
The immediate outlook for Zetrix AI remains uncertain, with the stock suspended from further trading declines for the day. The company’s denial of any wrongdoing may help stabilize sentiment, but the broader market reaction will depend on further disclosures or clarifications. Investors will likely monitor HeiTech Padu’s role in the NIIS project and any potential regulatory developments affecting Zetrix AI’s operations.
Related: Zetrix AI Bhd · Wong Thean Soon · Bursa Malaysia