KUALA LUMPUR: The FBM KLCI erased earlier gains by midday as investors continued to take profit following a six-day rally in the closing days of 2024. At the midday break, the benchmark index was down 2.43 points to 1,630.44. The broader market, however, was positive with 506 gainers compared to 476 decliners, suggesting that investors had turned their attention to picking up bargains among the lower liners. Turnover was 2.4 billion shares valued at RM1.48bil. Investors continue to tread cautiously amid a suggestion by the Federal Reserve that there will be fewer rate cuts this year than initially projected, while the incoming Trump administration will fuel inflation with its growth policies. In China, the Shanghai Composite index dropped 0.46% to 3,247 while Hong Kong's Hang Seng gained 0.87% to 19,794. Singapore's Straits Times fell 1.71% to 3,799. Japan's stock exchange remained closed for a national holiday. On Bursa Malaysia, laggards included Nestle down ...
Infrastructure and construction group Ekovest Bhd (KL) announced the disposal of four parcels of land along Jalan Pahang in Kuala Lumpur, measuring a total of 2,286 square meters.
Key Takeaways:
Transaction Details: The land is being sold to Airman Sdn Bhd, a wholly-owned subsidiary of Lim Seong Hai Holdings Sdn Bhd (LSHHSB), for RM9.82 million. This is considered a related party transaction as Ekovest's non-independent and non-executive director, Tan Sri Lim Keng Cheng, is a major shareholder and director of LSHHSB with a 25% stake. Other shareholders of Airman, each with a 25% stake, are Datuk Lim Keng Guan, Lim Pak Lian, and Lim Keng Hun.
Financial Impact: Ekovest expects to gain RM3.51 million from the disposal, with proceeds to be used for general working capital purposes.
Previous Transactions: On February 22, Ekovest divested 13 parcels of land totaling 12,400 square meters in the same area to LSHHSB for RM66.8 million.
Location Details: The land is situated on the left side of Jalan Pahang when traveling from Kuala Lumpur city center and Bulatan Pahang towards Gombak and Setapak localities.
Development Plans: Ekovest initially intended to integrate these land parcels into a mixed development project named EkoQuay. However, the development order expired in February 2021.
Market Response: Ekovest shares fell by two sen or 4.3% to 44.5 sen on Monday, giving the group a market valuation of RM1.32 billion.
Ekovest's continued land disposals reflect strategic adjustments in its development plans, leveraging assets to bolster working capital while navigating expired project approvals.
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