The fall last Friday was likely due to Umno president’s corruption cases

By NG MIN SHEN / Pic By TMR

It was a contrasting day for e-commerce service providers after the heavy fall in share prices suffered last Friday.

MyEG Services Bhd’s shares, which fell 24% or 37 sen last Friday, retraced some of the losses, rising some 25 sen or 22% to close at RM1.38, as investors pondered over company-specific news flow.

The e-government service provider was the most actively traded counter on the exchange yesterday with 175.6 million shares traded, rebounding despite telco stocks falling and dragging the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) down by 9.67 points or 0.56% to close at 1,722.47.

MyEG fell heavily last Friday after being linked to Umno president and former Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi’s corruption cases.

Ahmad Zahid was slapped with 45 charges of criminal breach of trust, accepting bribes and money laundering amounting to RM114.1 million.

Investors went long on the counter after MyEG denied making any payments to the accused.

The company ended the day with a market capitalisation of RM4.9 billion.

Datasonic Group Bhd closed three sen or 6.19% weaker at 46 sen yesterday, valuing the company at RM614.25 million, with 101.25 million shares changing hands.

Last Friday, the stock had tumbled 21 sen to close at 48.5 sen, erasing RM283.5 million in market capitalisation as investors sold down the counter due to Ahmad Zahid’s case.

Both MyEG and Datasonic have denied allegations of their involvement in the charges filed against Ahmad Zahid.

Local telcos slipped yesterday following weaker quarterly financial results achieved in the recent quarter ended Sept 30, 2018 (3Q18), as well as on continued expectations for the operating landscape to remain challenging amid regulatory risks and service price competition.

Maxis Bhd declined 17 sen or 3.15% to close at RM5.22, giving the firm a market capitalisation of RM40.8 billion.

The company’s 3Q18 net profit fell 9% to RM513 million on higher operational and maintenance costs, while revenue fell 3% to RM2.26 billion largely due to a decline in prepaid revenue.

Axiata Group Bhd, parent company of Celcom Axiata Bhd, shed 22 sen or 5.93% to settle at RM3.49, valuing the telco at RM31.65 billion.

Shares of Axiata have been on the downtrend over the past month, due in part to a weak market sentiment as well as its involvement in the buyout of its 28.7%-owned M1 Ltd, the smallest wireless operator in Singapore.

Analysts noted a potential rival bid by Axiata against offerors Keppel Corp Ltd and Singapore Press Holdings Ltd could strain its cash balance and debt position.

DiGi.Com Bhd, the smallest of the “Big 3” telcos, fell five sen or 1.16% to RM4.25. The company was valued at RM33.04 billion at the close yesterday.