Yangtze Optical Fibre and Cable (YOFC) stock plummeted 6.57% in pre-market trading, extending the selling pressure from the previous session.

The decline follows a dramatic intraday reversal in the prior trading session, where the stock initially surged on news of China Mobile's massive fiber optic cable procurement announcement with ceiling prices significantly exceeding market expectations. However, the rally was short-lived as the stock reversed sharply with aggressive profit-taking by holders at elevated levels, indicated by extraordinary trading volume.

Separately, the third-largest shareholder Yangtze Communication completed its planned reduction of shares between April and July, adding to the selling pressure. Despite the current decline, Nomura maintains its buy rating on YOFC with a target price significantly above current levels, citing expectations that China Mobile's bidding prices will rise given recent fiber price increases.