Services Bhd (MYEG) saw nearly RM2.8 billion wiped out from its market capitalisation, no thanks to the sharp selldown on companies that are perceived to be linked to the previous government, Barisan Nasional, and UMNO after the victory of Pakatan Harapan. As of 11:08am, MYEG was trading at RM1.81, the lowest in at least the last one year, and valued it at a market capitalisation of RM6.53 billion, Bloomberg data showed. According to CIMB, MyEG’s GST monitoring project is at risk and “could be in trouble” after the Pakatan Harapan coalition won the 14th General Election. “GST Monitoring Phase 2 (which involves the retail sector), was also expected to start after GE14,” CIMB added. At 15.x P/E valuation target, CIMB said MYEG could be worth around RM1.05.

Source: The Edge Markets May 14, 2018 03:56 UTC