KUALA LUMPUR (May 3): The FBM KLCI today closed 5.06 points or 0.31% higher led by gains in telecommunication stocks Axiata Group Bhd and Digi.Com Bhd.

Ekovest Bhd topped Bursa Malaysia's construction index gainers.
 
At 5pm, the KLCI closed up at 1,637.30 after falling to its intraday low at 1,625.56.

Axiata closed up nine sen or 2.28% at RM4.04 while Digi.Com rose eight sen or 1.8% to RM4.52 to become the top percentage gainers among the 30 KLCI stocks.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI advanced, led by bargain hunting in Axiata and Digi.Com shares. “Both companies contributed close to two points to KLCI's gain today,” said Leong.

Across Bursa Malaysia, 2.82 billion shares worth RM2.11 billion were traded.

Top-active stock Ekovest saw some 214 million shares traded after closing up 13 sen or 15.76% at 95.5 sen. Ekovest's sister company Iskandar Waterfront City Bhd (IWCity) saw some 88 million shares traded after closing up 10.5 sen or 11.11% at RM1.05.

Ekovest was the largest-percentage gainer among Bursa Malaysia's construction index's 49 stocks. The construction index ended up 3.11 points or 1.47% at 214.04 to become the top percentage advancer among Bursa Malaysia indices.

Ekovest and IWCity's share gains and active trade could be due to newsflow on the planned Bandar Malaysia property project here.

On April 19, the theedgemarkets.com, quoting the Prime Minister's Office's statement, reported that the joint venture to take up 60% of Bandar Malaysia Sdn Bhd was awarded to a consortium, IWH-CREC Sdn Bhd. It was reported that IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).

IWH, Ekovest and IWCity are sister companies by virtue of Tan Sri Lim Kang Hoo being a common major shareholder in these companies. Lim is also a major shareholder in PLS Plantations Bhd and Knusford Bhd.

On Tuesday (April 30), Kenanga Investment Bank Bhd analyst Adrian Ng wrote in a note that Kenanga reckoned that it is highly likely that IWH would need to look for funding from new investors, which might reactivate a rationalisation and restructuring exercise, which IWH explored back in 2017 that involved IWCity.

"Hence, we do not rule out a mega restructuring exercise that could potentially involve its sister companies — IWCity, Ekovest, PLS and Knusford in the future," Ng said.