The market was greeted with the news that IWCITY & EKOVEST are not involved in the revival of Bandar Malaysia (here). The share prices of both stocks rose sharply to attain limit-up yesterday.
The revival of Bandar Malaysia involved the original JV of IWH and CREC. IWH is a company controlled by Lim Kang Hoo while IWCITY is a subsidiary of IWH while EKOVEST is a sister company of both of these companies by way of substantial stake owned by Lim Kang Hoo.
I find the announcement to be an accurate & fair comment to make to the market given the euphoria surrounding IWH/CREH revival of Bandar Malaysia. The truth is these 2 companies, IWCITY and Ekovest may still participate in Bandar Malaysia development. The directors of these companies do not want to be accused of standing idly when the market is obviously laboring under the wrong impression- leading to potential losses for investors.
I expect the share prices of both stocks to drop sharply this morning. Eventually the same incentive to buy into these stocks would re-surface and buyers would come back. If you have mistakenly bought into these stocks, you can consider riding out the drop today.