EcoWorld, EWI shares leap after chairman's comment on likelihood of record earnings in FY19

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KUALA LUMPUR (Dec 11): Eco World Development Group Bhd (EcoWorld)'s shares leaped as much 12.4% or eight sen to 72.5 sen in afternoon trade after its chairman Tan Sri Liew Kee Sin said he expects the group to close its current financial year ended Oct 31, 2019 (FY19) on a record high note.

At 4.13pm, the trading volume of Eco World shares soared to 39.81 million, making it the eighth most-actively traded counter on Bursa Malaysia. Meanwhile, its share price stood at 72 sen, bringing it a market capitalisation of RM1.96 billion.

EcoWorld's 27%-owned associate and international arm, Eco World International Bhd (EWI), saw its share price gain as much as 9.28% or nine sen to RM1.06. At 4.16pm, the counter was traded at RM1.04, seven sen or 7.22% higher than yesterday's closing price, valuing it at RM2.38 billion.

Yesterday, The Edge Financial Daily quoted Liew as saying: "Despite the so-called downturn [in the property market], this year is the best year for EcoWorld and EWI."

EcoWorld is set to announce its annual financial results tomorrow (Dec 12).

EcoWorld's net profit for the nine-month period ended July 31, 2019, rose to RM121.97 million, from RM80.69 million in the previous corresponding period, while revenue grew 2.1% to RM1.56 billion from RM1.52 billion. EWI, meanwhile, recorded a net profit of RM68.71 million against a net loss of RM23.78 million previously.

See also: FY19 EcoWorld’s ‘best year’ — chairman