Proton shares slump
Saturday, January 14th, 2006 | 12:12 am @ SK
[UPDATED VERSION] The exit of VW from the partnership with Proton causes Proton shares to slump as much as 20 percent to a four-year low!
At 10:46am, Proton shares fell as much as 20 percent to RM5.10, changing hands at RM5.60.
It ended the day at RM5.65, down 11% from the previous day’s RM6.35, which means RM384.45 million of market capitalisation was burned up, just like that.
The sharp fall in share price translates into a reduction of its market capitalisation to RM3.1 billion, based on 549.21 million shares.
Related Link:
- Screenshots | Proton: When 70 sen means RM384.45 million
January 13th, 2006 at 11:23 am
aish .. can we just say bye bye to proton .. and let us get our Toyotas and Hondas at prices that makes sense!!!
January 13th, 2006 at 12:24 pm
Some stock investors says that our stock market is immature unlike NYSE and this is true. Just look at how sentiments can effect our stock market.
Personally, VW pulling off doesn’t really mean much to Proton. Proton still can carry on with their normal operation. Unless someone can tell me what happened at the back.
January 13th, 2006 at 12:29 pm
Aeroboy,
Proton has grown to a substantial size and influence. It is not that easy to say bye bye. If Proton closes down, our economy will be effected, that means you and me also will be effected. It is not always as glamourous as Proton goes down, then now we can have cheaper Toyotas or Hondas, and everyone happy.
If Proton close down, there will be thousands of unemployment (Proton alleged they have abt 10k staff). Also the automotive industry will crumble, meaning those suppliers and vendors that depends on Proton will die. People that manufacture headlights (ALMA) or exhaust (AISB) will suffer significantly.
I do not know to what extend Proton can influence the country but I can dare say it is not as easy as closing ‘Ah Beng Auto Shop’.
January 13th, 2006 at 12:34 pm
We had a life before Proton. We can still have a life after. Better or worse? Who can tell.
January 13th, 2006 at 12:42 pm
hmm…the should have just sold it to VW…and let us have cheaper cars…..everyguy deserves a car of their dream…..why must we get stuck with proton.
January 13th, 2006 at 3:07 pm
JL,
It’s just wishful thinking that I had to say it out, yes there would be a lot of repercussions from the closure of Proton but all the AP issues and Proton making a loss .. etc etc etc in the automotive industry is just tiring. Proton is without a doubt not an "Ah Beng Auto Shop" hoping to survive on a day to day basis.
I’m just an unhappy automotive purchaser that’s tired of paying a premium on cars so that Proton can survive.
January 14th, 2006 at 8:03 am
What’s Next for Proton?
Hmm… I never expected to write another entry regarding Proton, after this piece written in October last year. But recent developments have encouraged me enough to again, give my two cents regarding “Malaysia’s National Car Company…
January 14th, 2006 at 9:44 am
Proton will have to face the biggest enemy; emotional sentiment of Malaysian.
January 14th, 2006 at 10:51 am
Personally, i feel that while JL has a point, i think it may not be as dire.
The ’special’ part of the story is that MOST (not saying all) of Protons suppliers are ‘you know who’ companies set up to supply Proton and ONLY Proton so as to give these ’suppliers’ a steady income.
You’ve seen it before, where the PM himself has called these suppliers lazy and accused them of taking things for granted and relying on Proton alone with no drive to expand their business.
So yes, there will be suffering, but i think that most of those who end up suffering deserve it and while no doubt there will be fall out, i think it will a significant portion of it will be confined to this demographic that has been having a good time at the expense of the rest of us.
But then again, what do i know? I’m no economist.
April 23rd, 2007 at 11:50 pm
i personally feel that the gov isnt gonna let proton die off so fast. the nation’s reputations rely highly on it. more than just that, there are bigger issues such as the extensive rate of unemployment and a drop in GDP….one way or another, proton will be backed by the gov…