Ekovest, IWCity plunge on sustained profit taking

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KUALA LUMPUR (April 17): Shares in Iskandar Waterfront City Bhd (IWCity) and Ekovest Bhd continue to decline in active trade today as investors took profit after last week's surge on positive construction newsflow.

Hong Leong Investment Bank Bhd dealer representative Frank Lin said the earlier rally of these stocks, which followed other construction-related counters, had been sentiment driven based on the revival of the East Coast Rail Link (ECRL) project.

"I think the prime minister's (subsequent) announcement on the delay of the Kuala Lumpur-Singapore High Speed Rail (HSR) by one to two years poured additional cold water on the stocks," Lin told theedgemarkets.com.

At 4.27pm, both stocks were among Bursa Malaysia's top 10 actively traded counters. IWCity was down 9.5 sen or 10.21% at 83.5 sen, while Ekovest was down 3 sen or 5.22% at 54.5 sen.

Also active was Ekovest's Warrants B, which declined 2.5 sen or 23.81% to eight sen apiece.

On April 10, shares in Ekovest climbed to a six-month peak of 64 sen, while IWCity rose to a one-year high of RM1.01.

Prime Minister Tun Dr Mahathir Mohamad had announced on April 9 that the government is exploring proposals aimed at reducing the cost of the HSR project and will be discussing this further with Singapore.

However, at a rail technology conference yesterday, he said that the HSR is not necessary at the moment.

Shares of both IWCity and Ekovest had closed lower by four sen yesterday.