KUALA LUMPUR, Feb 8 — Research firm CGS-CIMB Securities Sdn Bhd believes that the market had overreacted to the National Integrated Immigration System project news, which led to MY EG Services Bhd’s share price tumbling by 27 per cent yesterday.
On Tuesday, Bursa Malaysia suspended the shortselling of MYEG shares for the rest of the day under proprietary day trading and intraday short selling after its stock dropped more than 15 sen, or 15 per cent, from the reference price. “We believe this is the optimal outcome in the near term given that we do not expect the government to immediately replace the incumbent service providers and risk a public backlash if the new system fails to deliver,” it said in a research note today.
The company added that it expects to maintain its foreign workers and maid permit renewals until at least 2025.