Ekovest, IWC shares drop after denial on involvement in Bandar Malaysia

Ekovest fell as much as 10 sen to 87 sen, while IWC plummeted 14 sen to RM1.18 yesterday


Share prices of Ekovest Bhd and Iskandar Waterfront City Bhd (IWC) dropped more than 10% yesterday after both companies denied their direct involvement in the RM140 billion Bandar Malaysia project.

Ekovest fell as much as 10 sen or 10.31% to 87 sen, wiping off some RM220 million in market capitalisation in yesterday’s trading.

Meanwhile, IWC plummeted 14 sen or 10.61% to RM1.18, with some RM117.09 million lost in market capitalisation.

The value of Ekovest now stands at RM1.86 billion, while IWC is at RM986.94 million.

Both companies, with a common shareholder tycoon Tan Sri Lim Kang Hoo, were the top active counters on Bursa Malaysia Bhd yesterday.

Bursa Malaysia suspended the proprietary day trading (PDT) and intraday short selling (IDSS) of both companies yesterday, after their share prices fell by more than 17% within the first trading hour.

Ekovest slid 18 sen or 18.6% to the lowest at 79 sen yesterday morning, while IWC plunged 23 sen or 17.4% to the lowest at RM1.09.

The counters’ trading under PDT and IDSS will resume at 8.30am today, according to Bursa Malaysia.

Both companies yesterday said in their filing to Bursa Malaysia that they are not involved in the recently revived Bandar Malaysia.

“Save for the press release issued by the Prime Minister’s Office on April 19, 2019, titled ‘Government to Reinstate Bandar Malaysia Project’, in which the name of our sister company, IWH-CREC Sdn Bhd was mentioned, the company wishes to clarify that IWC is not involved in the reinstatement of the Bandar Malaysia project.

“Also the company wishes to inform that it is not aware of any circumstance that may give rise to the aforesaid trading activities,” IWC said.

Ekovest has also issued the same statement to Bursa Malaysia.

Both companies have advised investors to exercise caution and make informed decisions in the trading of their shares.

The Malaysian Reserve reported on Monday that shares of local construction firms rose following the announcement on the revival of the multibillion Bandar Malaysia project, but the rally is perceived as short-lived until further details on the development are made.

Ekovest and IWC were among the top gainers on Monday after seeing their combined market value increase by RM893 million.

This came after the federal government retained IWH-CREC Sdn Bhd as the master developer for the RM140 billion transit-oriented mixed development.

IWH-CREC is a joint-venture vehicle of Iskandar Waterfront Holdings Sdn Bhd (IWH), which owns a 37.76% interest in IWC, and China’s state-owned China Railway Engineering Corp (CREC).

The decision to revive the Bandar Malaysia project sent IWC’s shares higher by 30 sen to close at RM1.32 on Monday, gaining 29.41% or RM250.92 million in market capitalisation.

Similarly, Ekovest’s shares closed 30 sen or 44.78% higher at 97 sen on Monday, resulting in a RM642 million gain in market value, while the company’s warrants traded 166.67% higher at 48 sen.

Yesterday, another construction counter, Gadang Holdings Bhd, closed six sen or 5.82% lower at 89 sen, with a RM588.93 million market capitalisation.

On the other hand, DWL Resources Bhd closed two sen or 1.19% higher at RM1.70 yesterday, giving it a market capitalisation of RM337.77 milllion.