PANIC SELLING DRAGS DOWN ANCOM
But shareholders get assurance business remains unaffected by Siew’s remand
PANIC selling sent Ancom Bhd shares down as much as 8.5 per cent yesterday, following the remand of its executive chairman Datuk Siew Ka Wei over allegations of power abuse in a Tourism Malaysia contract.
Siew, who was a former chairman of Tourism Malaysia, was remanded for four days by the Malaysian Anti-Corruption Commission (MACC) to assist in probe over a RM100 million contract awarded before the 14th General Election in May last year.
He was believed to have abused his position at Tourism Malaysia by recommending a company through direct appointment to carry out a digital promotion campaign project totalling more than RM99 million using the agency’s funds, Bernama reported on Wednesday, citing a MACC source.
Ancom issued a statement to Bursa Malaysia yesterday assuring shareholders that its business remained unaffected by the remand.
The stock slid as much as four sen yesterday before recovering to close unchanged at 43 sen, with 1.67 million shares traded.
Ancom Logistics Bhd, another counter related to Siew, lost 5.56 per cent to settle at 8.5 sen.
Malaysian Association of Technical Analysts adviser Nazarry Rosli said the dip was due to panic selling by investors after news of the remand was made known.
“When the bad news came out, the market and investors reacted by way of panic selling. However, the company has issued a statement to Bursa Malaysia saying there would be no negative effects on its business due to the bad news,” he told NST Business.
Siew is the largest shareholder of Ancom, with an 11.38 per cent direct stake.
Through Ancom, he has a 49.94 per cent interest in Nylex (M) Bhd, which is involved in the manufacturing, trading and sales of agricultural chemical products and industrial chemical products.
Siew holds a 45.3 per cent stake in Ancom Logistics, which is involved in chemical transportation, warehousing and chemical tank farm businesses.
Ancom also owns Redberry Sdn Bhd, which operates a wide range of media platforms, including billboards and airport indoor advertisements.