KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Zetrix AI Bhd (KL:ZETRIX), formerly known as MyEG Services Bhd, is under pressure after Bursa Malaysia issued a public reprimand over misleading announcements related to its government service contracts. The stock reacted swiftly, tumbling as much as 7.1% intraday before closing down 5.58% at 93 sen.
What Happened?
On Monday, Bursa Securities reprimanded Zetrix AI and fined seven directors, including MD Wong Thean Soonand Executive Chairman Datuk Dr Norraesah Mohamad, a total of RM150,000 each for violating disclosure rules. The infractions relate to inaccurate and misleading statements made in July and September 2023, falsely claiming continued government authorisation to collect fees for Immigration Department services.
Despite Bursa’s findings, Zetrix is pushing back. The company announced plans to seek a judicial review after consulting legal counsel.
Governance and ESG Concerns Mount
BIMB Securities issued a note of caution, highlighting:
Governance red flags surrounding unauthorised fee collection (May 2023–Jan 2024)
Potential legal and financial penalties
Risk of damaged investor trust and reduced ESG fund access
The broker downgraded Zetrix’s Governance score to 1.1 from 1.4, pulling its overall ESG rating to 3.6/5.0 (from 3.9).
Market Reaction & Analyst Views
Trading volume surged to 166.4 million shares, well above its 200-day average of 45.6 million, making it Bursa’s most actively traded counter.
Despite the turmoil, all five analysts covering Zetrix AI still maintain a “Buy” call, with a 12-month target price of RM1.42, implying upside potential of over 52% from current levels.
Analyst Takeaway
While Zetrix’s core business remains intact, the governance dispute introduces reputational risks, potential penalties, and regulatory uncertainty. Investors should monitor:
Judicial review outcomes
Official stance from Ministry of Finance
Revisions to government-related contracts
Any changes to analyst ratings post-clarification
Bottom Line:
Zetrix AI's fundamentals remain supported by digital public service demand, but headline risks and governance concerns now demand a more cautious, watchful approach from investors.
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