IJM shares fall 8.15pc to RM1.69

KUALA LUMPUR: IJM Corp Bhd shares yesterday fell as much as 20 sen, or 11 per cent, to RM1.63, its lowest level since June 2009, after announcing weak fourth quarter results, which saw net profit dropping more than 95 per cent.

The bearish sentiment on IJM was also due to the government’s decision to scrap the Mass Rapid Transit Line 3 project, estimated to cost up to RM50 billion, to control the country’s debt.

In March, IJM had won a contract for the underground package of the Light Rail Transit Line 3 project worth RM1.12 billion, its first construction contract win this year.

IJM said Prasarana Malaysia Bhd awarded the contract to its wholly-owned IJM Construction Sdn Bhd.

At midday, the stock was down 10.33 per cent, or 19 sen, to RM1.65 in active trade, with a total 13.21 million shares traded. That translated into a year-todate decline of about 45 per cent, from its closing of RM3.05 on December 29 last year.

It ended the day 8.15 per cent lower to RM1.69, with 37.79 million shares changing hands.

Yesterday, IJM said net profit in the fourth quarter ended March 31 plunged 95.3 per cent to RM11.19 million from RM236 million a year ago.

It was hit by lower contribution from all five of its main segments and a lower net unrealised foreign exchange gain.

The company’s revenue came in at RM1.4 billion, 16.2 per cent lower from RM1.67 billion a year ago.

It was bogged down by lower contribution from the property, manufacturing and quarrying, and plantations divisions.