IJM Corp, Ekovest down amid govt-Gamuda highway talks

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KUALA LUMPUR (Feb 25): IJM Corp Bhd shares were down as much as 20 sen or 10.05% while Ekovest Bhd fell as much as four sen or 6.67% on news the Government has begun talks with Gamuda Bhd to negotiate the acquisition of four highway concessions that Gamuda has a majority stake in, with the aim of abolishing toll collection at these highways.

IJM Corp shares fell to their lowest so far today at RM1.79. At 10:46am, the counter was traded at RM1.84 with 3.35 million shares traded.

At 10:36am, Ekovest's share price fell to its lowest so far today at 56 sen.

AmInvestment Bank Bhd analyst Joshua Ng wrote in a note today: "We expect weakness in the share prices of Gamuda, as well as other companies with toll road concessions such as IJM Corp and Ekovest."

IJM Corp's website shows that the group operates the Besraya or Sungai Besi Expressway, New Pantai Expressway, Kajang-Seremban Highway and West Coast Expressway (WCE), which is under construction.

According to Ekovest's website, the group, which operates the DUKE Highway, is also currently constructing the Setiawangsa-Pantai Expressway.