MyEG and George Kent register marginal increase on technical rebound aftermarket cap rout of RM7.3b

Screengrab of the MyEG portal on the internet May 14, 2018.
Screengrab of the MyEG portal on the internet May 14, 2018.

KUALA LUMPUR, May 18 — Two stocks linked to former prime minister Datuk Seri Najib Razak MYEG Services Bhd (MyEG) and George Kent (M) Bhd today experienced a brief respite after being battered in post-election trading on Monday.

At the close of today’s trading, MyEG was up by 2 sen to settle at 92.5 sen while George Kent was up by 6 sen to close at RM1.57.

“Both stocks had been battered quite badly and what we saw today was simply a technical rebound,” Maybank Investment Bank remisier Dick Lim, told Malay Mail.

Collectively, RM7.3 billion had been wiped out in the market capitalisation of these companies and the main reason was their close association to the Najib administration. George Kent’s chairman is Tan Sri Tan Kay Hock, a known close associate to Najib.

MyEG, an electronic government service provider was awarded the Goods and Services Tax monitoring contract and George Kent which had been awarded the LRT3 extension project was a front-runner for the lucrative rail projects that had been planned under Najib such as the High-Speed Railway and the East Coast Link Rail.

The market was closed for two days after the election as the Pakatan Harapan coalition that won had declared them public holidays.

Both the stocks had lost more than 60 per cent during the weeks trading after Bursa imposed limit down to their trading.

Limit down is a mechanism to stall further erosion to the stock price of the company after it slides more than 30 per cent.

Bursa also imposed a freeze on the floor price for both stocks on Wednesday. The floor price for MyEG was RM1.27 and for George Kent it was RM1.94.