KUALA LUMPUR (March 13): Ekovest Bhd fell 2 sen in heavy volume at mid-morning today, possibly due to profit-taking by investors after closing on a high of RM1.45 last Friday.
According to an analyst from TA Securities Bhd who declined to be named, the stock’s drop is likely due to investors selling their shares to realise their profit, after the counter’s gain last week.
The stock rose to its yearly high on Friday, jumping 291% from its low of 37 sen on March 15, 2016.
Property tycoon Tan Sri Lim Kang Hoo who is a majority shareholder in Ekovest, is also the executive vice-chairman of Iskandar Waterfront Holdings Bhd (IWH) which is now in a proposed merger exercise with its majorly-owned company Iskandar Waterfront City Bhd (IWC), as announced last week.
According to an article in The Edge Financial Daily on March 9, the merger will see a one-for-one share swap exercise in which IWH would take over the IWC’s listing status, as well as a proposed asset acquisition of RM4.1 billion from four parties, including Tan Sri Lim Kang Hoo and Sultan Ibrahim Sultan Iskandar of Johor, through issue of new shares and new redeemable convertible preference shares (RCPS).
Lim currently owns 63.1% in IWH through Credence Resources Sdn Bhd, while IWH currently holds a 38.34% stake in IWC.
Ekovest shares fell 1.38% at 11am today to settle at RM1.43, with some 38 million shares traded.— theedgemarkets.com