KUALA LUMPUR (May 5): MyEG Services Bhd's share price was little changed on Friday (May 5) after the company lost its exclusive status in providing Road Transport Department (JPJ)-related online services.
The stock closed one sen or 1.22% lower at 81 sen, valuing the service provider at RM6.06 billion. Trading volume amounted to 35.73 million shares, less than Wednesday’s volume of 42.37 million. The market was closed on Thursday in conjunction with Wesak Day.
MyEG shares have fallen 5.81% since the beginning of this year, and by 11.97% compared with a year earlier. Among research houses tracking the stock, six have issued ‘buy’ calls and three others ‘hold’ calls, with a consensus target price of RM4.11, according to Bloomberg data.
On Wednesday, Transport Minister Anthony Loke Siew Fook announced that MyEG's contract for the provision of online JPJ-related services had been extended by another three years. However, the contract will no longer be exclusive to MyEG, meaning that other service providers could potentially offer the services, which include road tax and driving licence renewals.
In February, MyEG shares fell due to a heavy selldown, after Loke announced that private vehicle owners would no longer be required to display road tax stickers on their vehicles, or carry a physical copy of their driving licence.
The stock also came under selling pressure during that month after it was reported that all immigration services and processes will revert to the Immigration Department by 2025.