But the call warrant fall from 18% to 50%.
CRY also no tears.
Look at what the edge say:
|JCY plunges on “operation” of market-makers/institutions|
|Business & Markets 2012|
|Written by Ho Wah Foon of theedgemalaysia.com|
|Wednesday, 05 September 2012 12:29|
The plunge puzzled investors as the company will be giving out its interim tax-exempt dividend of 3 sen soon.
While in August the dumping of JCY shares was due to fundamentals on the back of its weaker results and dim outlook for the TECHNOLOGY  sector and HDD sector, this time around it appears to be due to the operation of market-makers and institution.
At 11.59 am, JCY fell 13.5 sen or 13% to 90.5 sen after hitting a low of 89 sen in early trade. Its trading volume topped the active list, with 55.608 million shares transacted.
“The market-makers and institutions are causing JCY to plunge today by selling down the share to gain profit from the bigger fall (in percentage terms) of the call warrants,” said a senior dealer who follows JCY closely.
His explanation: “When these market-makers and institutions which have detailed knowledge of JCY shares and warrants sell JCY, the call warrants of JCY automatically fall with the mother share (JCY).
“As they had sold the warrants (at higher price) earlier, they are making a profit now if they buy back the warrants at lower prices. The profit they make from warrants is more than enough to offset the loss they incur in selling JCY today.”
While in percentage terms, JCY fell 13%, seven of the nine falling call warrants of JCY fell 25-50%. The only exception was JCY-HA, which actually rose.
The dealer noted that retail investors, who had earlier thought that JCY share was cheap as it had plunged below the RM120-RM145 target price of leading stockbroking houses, were caught with losses now after buying the share at above RM1.10 last week.
In fact, the market saw no reason why JCY should fall further after the August bashing as its third interim single-tier tax-exempt dividend of three sen goes ex on Sept 18.
JCY shares fell in August after global PC makers lowered their global outlook and CIMB downgraded the stock.