Thursday 28 Mar 2024
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KUALA LUMPUR (June 25): T7 Global Bhd saw its share price surged as much as 34.5% in early trade, amid news reports that the controversial East Coast Railway Line (ECRL) project could avoid the axe under the new government, Pakatan Harapan.

The stock hit an intraday high of 56.5 sen in early trade, before ending the morning session at 51.5 sen, up 22.62% or 9.5 sen, with 23.83 million shares exchanging hands.

The trading volume for T7 was about 6 times more than its 200-day average volume of about 3.9 million shares, indicating a surge of interest in the company.

On Saturday, an online portal had reported that Finance Minister Lim Guan Eng had highlighted ECRL as one of the mega projects that is currently on a renegotiation phase, while the KL-Singapore High-Speed Rail (HSR) is being reviewed.

“Review means that it may not go on. That it may be deferred. Re-negotiating means we are talking about pricing,” Lim was quoted as saying.

Recall that T7 Global had inked a memorandum of understanding (MoU) with Terengganu state-linked corporation Eastern Pacific Industrial Corp Bhd (EPIC) and CMC Engineering Sdn Bhd, a wholly-owned bumiputera company, to form a consortium to undertake the construction of the RM60 billion ECRL project’s Terengganu parcel.

It is also worth noting that post the 14th general election, Berjaya Corp Bhd founder and executive chairman Tan Sri Vincent Tan Chee Yioun had emerged as a substantial shareholder of T7 Global, with the acquisition of 21 million shares or a 5.04% stake. 

Tan was among some of the entrepreneurs that have been very successful under current Prime Minister Tun Dr Mahathir Mohamad’s 22 years reign, prior to his retirement in 2003. The latter has led Pakatan Harapan to a historic win in GE14 and has returned as the prime minister for a second time, following that.

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