KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Market Reaction
Ekovest Bhd (KL:EKOVEST) and Knusford Bhd (KL:KNUSFOR) shares slid sharply on Tuesday after their proposed RM450 million merger fell through following the third extended deadline.
Ekovest: Closed down 7.95% at 40.5 sen, with a market cap of RM1.2 billion.
Knusford: Dropped 17.7% to 51 sen, valuing the company at RM50.82 million.
Ekovest was the second most traded stock on Bursa Malaysia, with 104.44 million shares exchanged, more than nine times its 90-day average. Knusford’s trading volume surged to 5.55 million shares, 33 times higher than usual.
Merger Falls Through
Both companies confirmed they were “unable to reach an agreement on the transaction value and key terms.” While the deal has lapsed, they left the door open for future discussions if conditions improve.
The merger, first announced in October 2023, would have seen Knusford acquire Ekovest Construction Sdn Bhd via a share issuance at 60 sen apiece. The plan aimed to consolidate major shareholder Tan Sri Lim Kang Hoo’s construction assets under Knusford to streamline operations and eliminate related party transactions.
What’s Next for Ekovest?
Despite the failed deal, Ekovest is still pursuing other strategic moves. Last Friday, the company extended the deadline to acquire a 70% stake in Credence Resources Sdn Bhd for RM1.15 billion until August 29. Credence Resources owns a significant stake in Iskandar Waterfront Holdings, which in turn holds 34.29% of Iskandar Waterfront City Bhd (KL:IWCITY).
Investment Perspective
The sharp sell-off reflects investor disappointment over the failed consolidation, which was expected to create operational synergies. However, with Ekovest still active in strategic acquisitions, future corporate actions could provide new catalysts for both stocks if they deliver on long-term growth plans.
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