Founder Group Plummets 29% Amid Solar Sector Volatility – What’s Driving the Selloff?

Summary
• Founder Group (FGL) plunges 29.07% to $0.6598, hitting its 52-week low of $0.641
• Intraday range of $0.641–$0.80 highlights extreme volatility
• Turnover surges 1,166% as short-term bearish momentum intensifies
• Sector leader First Solar (FSLR) declines 0.93%, signaling broader market jitters

Founder Group’s stock has imploded on Thursday, driven by a mix of investor skepticism and sector-wide headwinds. Despite announcing a landmark RM1.16 billion solar-plus-storage project in Malaysia, the stock’s collapse reflects deepening concerns over revenue sustainability and valuation. With technical indicators flashing bearish signals and the solar sector under pressure, traders are scrambling to decipher the next move.

Investor Skepticism Overshadows Record Solar Project Announcement
Founder Group’s 29% drop defies the bullish narrative of its RM1.16 billion Sarawak solar project, as investors fixate on underlying risks. The Simply Wall St analysis highlights a 39% revenue decline and a price-to-sales ratio of 0.8x—well below the sector average—raising doubts about the company’s ability to sustain growth. Despite the project’s scale, the market perceives it as a high-risk bet amid Malaysia’s evolving regulatory landscape and global solar supply chain uncertainties. The recent string of smaller contracts (e.g., $2.6 million rooftop solar) has failed to offset long-term revenue concerns, amplifying the selloff.

Solar Sector Suffers as First Solar Trails Market Decline
The solar sector is under broad pressure, with First Solar (FSLR) down 0.93% despite its dominant market position. Founder Group’s collapse mirrors sector-wide jitters over U.S. policy shifts and supply chain bottlenecks. While FSLR’s recent guidance for higher 2025 sales offers some optimism, the sector’s bearish sentiment is reinforced by declining P/S ratios and tepid demand for green energy infrastructure. Founder Group’s -29% move, however, is an outlier, reflecting its unique exposure to Malaysia’s fragmented regulatory environment and execution risks.

Technical Indicators Signal Deepening Bearish Momentum
• RSI: 33.73 (oversold territory)
• MACD: -0.018 (bearish divergence)
• 200D MA: $1.335 (price 55% below)
• Bollinger Bands: $0.641–$1.348 (price near lower band)

The technical landscape is dire for FGL. The RSI at 33.73 suggests oversold conditions, but the MACD’s -0.018 and bearish histogram indicate momentum is not reversing. The 200-day moving average at $1.335 is a distant target, with price now 55% below. Traders should focus on short-term bearish setups, targeting the 52-week low of $0.641 as a critical support level. Given the absence of options liquidity, leveraged ETFs are not viable, but the broader solar sector’s weakness (FSLR -0.93%) underscores the need for caution. Aggressive short-sellers may consider a tight stop above $0.70 to capture further downside.

Backtest Founder Group Stock Performance
The backtest examining Founder Group (Ticker: FGL) performance after every intraday plunge of 29 percent or more (from 2022-01-01 to 2025-09-26) shows that a simple “buy-at-close on the plunge day, hold without an exit rule” approach delivered poor risk-adjusted returns:• Total return: –64.3 % • Annualized return: –28.9 % • Maximum drawdown: 83.6 % • Sharpe ratio: –0.21Interpretation 1. Although extreme one-day sell-offs may appear attractive for bargain-hunting, the subsequent price path of FGL has remained decisively negative on average. 2. The very large drawdown and negative Sharpe highlight that downside risk ≫ any rebound benefit. 3. These findings suggest that additional risk controls (tight stop-loss, profit-taking, maximum holding days) or confirming signals (e.g., volume capitulation, reversal candlesticks, macro filters) are essential before attempting to trade such extreme plunges.You can review the interactive back-test panel below for full details.Feel free to explore the module and let me know if you’d like to test alternative exit tactics or add risk-control parameters (e.g., 8 % stop-loss, 15 % take-profit, or a 5-day maximum holding period).

Urgent: Position for a Volatile Rebound or Exit on Weakness
Founder Group’s freefall reflects a perfect storm of valuation skepticism and sector-wide headwinds. While the RM1.16 billion project is transformative, the market’s focus on near-term risks—revenue declines, regulatory uncertainty, and a weak P/S ratio—has overwhelmed optimism. The solar sector’s broader decline, led by First Solar’s 0.93% drop, suggests systemic challenges. Traders should monitor the $0.641 52-week low as a potential floor, but the technical indicators (oversold RSI, bearish MACD) imply further pain. For now, the priority is to avoid long positions and consider short-term bearish strategies. If the stock breaks below $0.641, the path to $0.50 becomes a real threat—watch for confirmation.