Shares of Walnut Capital (00905) plummeted 6.36% in pre-market trading on Thursday, following a warning from the company about potential stock price volatility. The significant drop comes as investors react to concerns raised by the company regarding its shareholder structure.

In a statement released on Wednesday, Walnut Capital Limited addressed the recent movements in its stock price. The company cautioned that due to a high concentration of shares held by a small number of shareholders, its stock could be subject to substantial fluctuations. This warning appears to have triggered a sell-off as investors reassess their positions in light of the increased risk.

Additionally, Walnut Capital announced changes to its leadership structure, appointing Mung Hon Ting, Jackie as Co-Chairman, while Mung Kin Keung was re-designated to Co-Chairman. While these leadership changes may contribute to investor sentiment, the primary driver of the stock's decline seems to be the company's warning about potential volatility. Investors are advised to exercise extreme caution when trading Walnut Capital shares in light of these developments.