KUALA LUMPUR (Jan 2): Eversendai Corp Bhd saw its share price slid as much as 25% to 58.5 sen this morning, the first day of trading in 2015, as analysts see slower project execution by the company this year.

An analyst with a local investment bank told theedgemarkets.com that Eversendai’s share price drop was probably a result of a market correction to its share price, which had shot up to 78 sen on Dec 31, 2014, from 57.5 sen a day earlier (Dec 30).

“There was probably some window dressing activity on the last day of the year that caused the share price to shoot up.

"Its price today should be a result of a correction as there is no current development in the company that could have caused the downward price movement,” he said.

At 11.59 a.m today, Eversendai shares were trading at its low of 58.5 sen, with 1.22 million shares exchanging hands.

In a note Dec 23, RHB Research maintained “neutral” on Eversendai with a lower target price of 54 sen (from 73 sen), saying the recent collapse in crude oil prices would have a negative bearing on oil wealth, and hence impede the ability of certain oil-exporting countries in the Middle East to continue with their spending on lavish projects.

“This does not augur well for Eversendai, which derives about 80% of its revenue and 50% of its profit from the Middle East.

“Its current order backlog of RM1.6 billion will only lend earnings visibility over the next 18 months,” it said.