1. What Happened? Pume Asset Management Sells Off Sonokong Shares

Pume Asset Management significantly reduced its stake in Sonokong from 13.77% to 3.43% between July 22nd and 29th, 2025, raising concerns about the stock’s future performance.

2. Why Did This Happen? Sonokong’s Shaky Fundamentals

Sonokong’s 2024 performance was weak, with a 36.4% year-over-year decrease in revenue and continued operating losses. Factors contributing to this decline include a high exchange rate and the termination of a contract with Riot Games. Despite an increase in total assets, the company’s financial structure remains unstable with rising liabilities. Improved liquidity is attributed to accounting changes rather than operational improvements. The recent change in majority shareholder also adds to the uncertainty.

3. What’s Next? Potential Stock Decline and Market Anxiety

Pume Asset Management’s sell-off is likely to negatively impact Sonokong’s stock price in the short term, exacerbating existing concerns about the company’s weak fundamentals and dampening investor sentiment. The current market environment, characterized by a high exchange rate, rising interest rates, and increasing bond yields, further complicates the situation for Sonokong.

4. What Should Investors Do? Proceed with Caution and Monitor Closely

Investors should exercise caution when considering investments in Sonokong. Closely monitor the company’s future management strategies, performance improvement plans, and their execution. Key indicators such as exchange rate fluctuations and inventory management improvements warrant careful observation. Further market research and financial analysis are crucial for minimizing investment risk.