Ekovest MD says sell-down temporary as fundamentals strong, intact

Ekovest MD Datuk Seri Lim Keng Cheng said:

KUALA LUMPUR: Ekovest Bhd, whose shares and warrants fell sharply on Thursday following the negative news about the cancellation of the Bandar Malaysia deal, described the sell-down as a “temporary phenomenon”.

Its managing director Datuk Seri Lim Keng Cheng said: “We believe the sell-down of Ekovest shares today is just a temporary phenomenon, as our fundamentals remain strong and intact. 

“I call upon the investors to continue to evaluate how each of Ekovest's business divisions are managed and run, as it better reflects our performance.”

Ekovest's shares hit limit-down to RM1.01 in early Thursday trade on news that the Ministry of Finance (MoF) decided to call off the Bandar Malaysia deal with Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).

Ekovest and IWH's unit Iskandar Waterfront City (IWCity) are linked to  Tan Sri Lim Kang Hoo. IWCity had sought a two-day trading suspension.

At the close of trade on Thursday,  Ekovest was down 26 sen to RM1.17 with 230 million shares done while the warrants, Ekovest-WB fell 17.5c to 95.5 sen with 28.34 million units traded.

Lim Keng Cheng said: “It is best to avoid any speculation and focus on fundamentals and the facts that are known. Ekovest’s prospects remain promising due to its active assets and strong cash flow generation. I hope the market will continue to keep its focus on the intrinsic merits of our businesses. 

“The company has been run professionally and independently since its incorporation. It has a deeply entrenched value system and an extensive talent pool,” he added.