Litrak shares up as much as 9% on news of toll abolition deferment

This article first appeared in The Edge Financial Daily, on August 15, 2018.
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KUALA LUMPUR: Shares in Lingkaran Trans Kota Holdings Bhd (Litrak) jumped as much as 29% yesterday morning, following news the government has agreed to defer toll abolition until

the country’s fiscal position improves.

The highway concessionaire opened RM1.34 higher at RM5.90, before paring most of the gains. It eventually settled at RM4.69, still 13 sen higher from Monday’s close, which valued the group at RM2.48 billion.

The Pakatan Harapan government had promised that tolls would be abolished in its manifesto for the 14th general election.

But Works Minister Baru Bian said on Monday that abolishing tolls nationwide was no mean feat.

“The government has always wanted to fulfil its promise to abolish tolls, but it acknowledged that it is not an easy task, due to the country’s current fiscal pressure.

“After we studied and reviewed the factors and implications, the cost required, as I have mentioned previously, is RM400 billion, so the government has agreed to defer the abolition until the country’s economy and fiscal position improves,” he was reported as saying during ministerial question time in Parliament.