Awantec share price falls as much as 28% on political uncertainty

Awantec share price falls as much as 29% on political uncertainty

Awantec share price falls as much as 29% on political uncertainty

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KUALA LUMPUR (Jan 6): AwanBiru Technology Bhd (Awantec), formerly known as Prestariang Bhd, saw its share price plunge as much as 28% this morning.

At 3.50pm, the counter pared some of its losses and was down 15.38% or 15 sen at 82.5 sen, for a market capitalisation of RM651.02 million. Some 91.66 million shares were traded.

Over the past year, the stock has risen by 125% from 36 sen.

Another ICT solutions provider, Iris Corp Bhd also saw its share price fell 11.76% or five sen to 37.5 sen, with some 513.15 million shares traded. The stock had risen 168% over the past one year from 14 sen.

A fund manager, speaking on condition of anonymity, said the plunge in Awantec’s share price today could be due to political uncertainty in the country. 

“The company depended a lot on government business and it is currently trying to claim about RM800 million from the government as compensation for the cancellation of the SKIN (Sistem Kawalan Imigresen Nasional) project,” the fund manager said.

Should there be a change in government, the company’s claim would be tougher, the fund manager noted.

A stockbroker said market syndicates are selling down the stock, with political risk as a reason for the plunge today.

The stockbroker said Awantec is seen as a speculative stock as the company does not have that much concrete earnings and is subject to market risk.

Last month, Microsoft terminated the membership of Awantec’s wholly-owned unit Prestariang Systems Sdn Bhd (PSSB) in the Microsoft Partner Network (MPN) with effect from Jan 31, 2021. Thus, PSSB will no longer be an affiliate or a Microsoft “partner”. 

Earlier today, Awantec announced that it is collaborating with Huawei Technologies (Malaysia) Sdn Bhd to promote the adoption of Huawei Cloud and artificial intelligence products and services in the public sector.

The collaboration will drive the adoption of Huawei Cloud products and services at both the federal and state levels, as well as among Malaysia’s statutory bodies, government-linked Companies and commercial organisations.

Read also:
Awantec partners with Huawei to drive digitalisation of Malaysia’s public sector

S Kanagaraju