Market Reaction and Covenant Breach at Zetrix Ai Bhd
Zetrix Ai Bhd (0138.KL) closed the trading session on Friday, 23 October 2026, at MYR 0.08, marking a ‑9.09 % decline from the previous close. The shares were traded at a cumulative volume of approximately MYR 3.6 million over the last 24 hours, against a total float of 7.9 billion shares and a market capitalisation of MYR 403.9 million. Over the past month the stock has suffered a staggering ‑75.61 % swing, underscoring the depth of the current crisis.
Covenant Breach and Sukuk Wakalah Program
Zetrix Ai Bhd is on the brink of a covenant breach within its RM2 billion Sukuk Wakalah programme. The covenant requires the managing director to retain the status of the company’s largest shareholder. Recent forced share disposals have eroded the director’s combined direct and indirect stake from nearly 30 % to 1.9 %, thereby triggering the breach. The company has assured that it remains compliant with its scheduled repayments; however, the trustee, Pacific Trustee Bhd, will convene a meeting with shareholders on 23 October to negotiate a resolution or secure a waiver.
If a satisfactory arrangement cannot be reached, the covenant breach could be deemed a dissolution event, allowing the trustee to demand immediate repayment of both outstanding principal and future coupon payments. The company’s swift response to this situation will be critical in determining the trajectory of its capital structure and market confidence.
Technical Context
- 200‑day Simple Moving Average: MYR 0.67
- 52‑week High: MYR 0.91 (22 October 2026)
- 52‑week Low: MYR 0.05 (22 October 2026)
The current price sits well below the 200‑day moving average and has not yet approached the 52‑week low, suggesting that the stock still has a marginal buffer before a further steepening of the decline. Nonetheless, the sustained slide and covenant risk weigh heavily on investor sentiment.
Peer Performance Snapshot (Last 24 Hours)
| Stock | Ticker | 24 h Change | Current Price | Market Cap | P/E |
|---|---|---|---|---|---|
| Apollo Food Bhd | 6432.KL | 0 % | MYR 5.8 | MYR 464 mn | 13.91 |
| Able Global Bhd | 7167.KL | 0 % | MYR 1.52 | MYR 471.9 mn | 6 |
| Wce Bhd | 3565.KL | +0.74 % | MYR 0.68 | MYR 479 mn | – |
| Ge‑shen Bhd | 7197.KL | +0.88 % | MYR 1.25 | MYR 478.3 mn | 30.49 |
| Kenanga Investment Bank Bhd | 6483.KL | –0.79 % | MYR 0.6 | MYR 463.5 mn | 10.79 |
While Zetrix Ai Bhd’s performance is markedly weaker than its peers, the broader market context remains subdued. Investors should monitor the upcoming covenant discussion closely, as its outcome will likely dictate the company’s short‑term liquidity and long‑term valuation prospects.
Forward‑Looking Assessment
From an insider perspective, the key determinants of Zetrix Ai Bhd’s near‑term trajectory are:
- Outcome of the Sukuk Wakalah Covenant Negotiation – A successful waiver or shareholder alignment will prevent a liquidity crunch; a failure will trigger a rapid capital demand.
- Market Perception of Management’s Control – The significant loss of shareholding by the managing director may erode confidence among institutional investors.
- Technical Breakthroughs – The stock’s failure to regain the 200‑day moving average signals potential further downside until a clear support level materialises.
In conclusion, Zetrix Ai Bhd faces a pivotal juncture. The resolution of the Sukuk covenant dispute will either preserve the company’s existing financing framework or precipitate a forced liquidation scenario. Market participants must weigh the risks of continued share price erosion against the possibility of a negotiated settlement that could stabilize the company’s financial footing.