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KUALA LUMPUR (Jan 6): AwanBiru Technology Bhd (Awantec), formerly known as Prestariang Bhd, saw its share price drop as much as 29% this morning.
At 3.50 pm, the accountant cut some of his losses and fell 15.38% or 15 sen to 82.5 sen, for a market cap of RM651.02 million. 91.66 million shares were traded.
Over the past year, the stock is up 125% from 36 sen.
Another ICT solutions provider, Iris Corp Bhd, also saw its share price drop by 11.76% or five sen, to 37.5 sen, with some 513.15 million shares traded. The stock was up 168% over the past year from 41 sen.
A fund manager, who spoke on condition of anonymity, said the drop in Awantec’s share price today could be due to political uncertainty in the country.
“The company relied heavily on government business and is currently trying to claim around RM800 million from the government as compensation for the cancellation of the SKIN (Sistem Kawalan Imigresen Nasional) project,” said the fund manager.
If there were a change of government, the company’s claim would be more difficult, the fund manager said.
A stockbroker said market syndicates are selling stocks lower, with political risk as a reason for the drop today.
The stockbroker said Awantec is considered a speculative stock, as the company does not make as many concrete earnings and is subject to market risks.
Last month, Microsoft terminated the membership of Awantec’s wholly-owned unit, Prestariang Systems Sdn Bhd (PSSB) in the Microsoft Partner Network (MPN) with effect from January 31, 2021. Therefore, PSSB will no longer be a Microsoft affiliate or partner ”.
Earlier today, Awantec announced that it is collaborating with Huawei Technologies (Malaysia) Sdn Bhd to promote the adoption of Huawei Cloud products and services and artificial intelligence in the public sector.
The collaboration will drive adoption of Huawei Cloud products and services at the federal and state levels, as well as among Malaysian statutory bodies, government-linked companies and commercial organizations.
Read also:
Awantec partners with Huawei to drive the digitization of Malaysia’s public sector
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