FIT HON TENG's stock plummeted 5% during Tuesday's intraday session, reflecting a sharp pullback in the optical communication sector.

The decline follows a recent rally where the stock surged over 14% in the previous trading session, driven by robust AI computing demand and positive signals from US-listed Lumentum regarding optical component demand. However, the sector is now experiencing profit-taking pressure, with FIT HON TENG continuing a pattern of sharp declines after rapid gains—similar to a drop of over 5% on April 24 after a prior rally.

Additionally, a block sale of 700,000 shares worth approximately HKD 5.355 million suggests institutional selling activity. The current valuation already reflects elevated market expectations, while the company's earnings capacity remains relatively modest, creating uncertainty around future performance delivery. Short-term price action is being influenced by sector-wide oscillation following the recent rapid run-up.