e-Govt service providers hit by uncertainties

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KUALA LUMPUR (Oct 22): Although shares in My E.G. Services Bhd recovered slightly this morning after hitting limit-down last Friday, other e-government service providers saw their share prices decline in early trade amid uncertainties over their contracts.

Shares in Dagang NeXchange Bhd (DNeX), Iris Corp Bhd and Prestariang Bhd all fell today after market watchers shared concerns that the new government may review existing concessionaires, including e-government contracts in order to plug leakages.

Iris and Prestariang were both active in morning trade, with Iris falling 1 sen or 5.71% to 16.5 sen and Prestariang down 3 sen or 5.6% to 51 sen as at 11.22am.

Meanwhile, DNeX had declined 0.5 sen or 1.3% to 37.5 sen over the same period.

Datasonic Group Bhd, which had been mentioned in corruption charges against former deputy prime minister Datuk Seri Ahmad Zahid Hamdi on Friday, had declined 1 sen or 2.06% to 47.5 sen by 11.14am, resuming its decline after a slight mid-morning uptick.

Today, The Edge Financial Daily noted that these stocks have already fallen sharply year-to-date, making them potential bargains in terms of valuations.

However, it cited market watchers as saying that contracts given to concession companies are at risk as the new administration looks to "spend smarter".