IWCITY (1589) - Iskandar Waterfront City gains as much as 24% on Bandar Malaysia contender woes

PETALING JAYA : Iskandar Waterfront City Bhd (IWC) shares jumped as much as 24% in early morning trade on news quoting sources, that China's regulators have told local banks to stop funding Dalian Wanda Group's overseas expansion plans.

IWC, which is to merge with Iskandar Waterfront Holdings Bhd, the previous joint venture partner of the terminated deal to purchase a 60% interest in Bandar Malaysia and the master developer, saw lacklustre trading after Prime Minister Datuk Seri Najib Abdul Razak announced that Dalian Wanda is interested in participating in the Bandar Malaysia project.

The recent news out of China however begs the question of whether Dalian Wanda will still be interested. The Ministry of Finance issued its request for proposal on July 5, with the condition that bidders must be an affiliate of a Fortune 500 company.

The group's shares have been on a downtrend since early May. The last couple of days however has seen it make steady gains, after hitting a low of RM1.19 on July 14.

As at 12.20pm the stock was trading at RM1.48 or 19% higher, with some 58.37 million shares changing hands. It is the second most actively traded counter.