VCI Global (NASDAQ:VCIG) stock is taking a beating on Wednesday, but it’s not due to any negative news from the business and technology consulting company.
Instead, shares of VCIG stock are falling today as they retreat from a rally the company’s shares underwent yesterday. That came from some 117 million shares changing hands, which sent the stock up 156% when markets closed on Tuesday.
Given that massive rally, it makes sense that shares of VCIG stock would give up some of those gains today. Today’s fall comes with some 758,000 shares being traded. For comparison, the daily average trading volume for the stock is 3.3 million shares.
What Was Behind the VCIG Stock Rally?
Yesterday’s massive rise in price for VCIG stock came alongside the announcement of Socializer Messenger. This is a communication application developed by Cogia GmbH with a focus on offering clients encryption and privacy protection. VCI Global has been chosen as the distributor for this app.
With this deal, VCI Global is serving as the exclusive distributorship in Southeast Asian countries. It is also acting as the non-exclusive distributorship for locations outside of Southeast Asia. The company will also gain a percentage of sales from Socializer Messenger as its distributor.
VCIG stock is down 20% as of Wednesday morning.
There’s more stock market news traders will want to read about below!
We’ve got all of the hottest stock market news for traders to catch up on today. A few examples of that include what’s happening with shares of LumiraDx (NASDAQ:LMDX) and Advanced Health (NASDAQ:AHI) stock, as well as the biggest pre-market stock movers for Wednesday morning. Investors can find more on these matters at the following links!
More Wednesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
