MyEG share price tumbles despite clarification

PETALING JAYA: MyEG Services Bhd’s share price fell almost 24% or 20.5 sen to 65.5 sen today despite it clarifying that the foreign workers rehiring programme to end on June 30 did not a constitute a termination of its contract.
“The board wishes to clarify that new registration under the project had ceased since Dec 31, 2017 in accordance to the MoHA’s (Home Ministry) letter dated Jan 23, 2017. The closing date as stated in news articles is the grace period to allow all remaining registrants to complete all pending procedures under the project,” MyEG said in a filing with Bursa Malaysia Securities.
“Therefore, the issue of any ad hoc termination of the project, as alluded to in the news articles, does not arise as the project, which is intended to run for a fixed duration, is adhering to its existing prescribed deadlines,” it added.
The counter was the most actively traded, closing 17.5 sen or 20.4% lower to 68.5 sen with some 206.6 million changing hands.
Following the sharp fall in its share price of over 15 sen or 15%, Bursa Malaysia suspended the short selling of MyEG shares for the rest of the day.
The programme to legalise undocumented foreign workers was initially scheduled to go on from Feb 15, 2016 to Aug 15, 2016. It was later extended to Dec 31, 2017.
Between Feb 15, 2016 and May 28, 2018 a total of 744,942 undocumented foreign workers and 83,919 employers had been registered for the programme.
Following the cessation of the programme, Home Minister Tan Sri Muhyiddin Mohd Yassin said all services related to the employment of foreign workers will be conducted by the Immigration Department and no extension will be given to the three vendors.
The other two companies involved in the programme were Iman Resources Sdn Bhd and Bukti Megah Sdn Bhd.