SunCon shares up after being spared from anti-graft probe

New Straits Times

7 hours ago

KUALA LUMPUR: Sunway Construction Group Bhd's shares on Bursa Malaysia went up in the early session today after the company and its subsidiaries were spared from an ongoing anti-graft probe involving one of its employees.
At 10.15 am, the counter rose 10 sen to RM5.86, with a total of 1.85 million shares changing hands.
RHB Investment Bank Bhd believes that the latest Malaysian Anti-Corruption Commission (MACC) update may instil confidence towards the group's established robust mechanisms and systems that uphold anti-corruption compliance, as the case remains an isolated one.
"The adoption and certification of the ISO 37001 Anti-Bribery Management System (ABMS)demonstrates its commitment to ethical business practices, requiring substantial financial investment in system development, amongst others.
"We think that Sunway Construction will continuously enhance processes and internal controls, moving forward," it said in a note today.
On Tuesday, the group said that it had received an official written confirmation from MACC clarifying that the scope of its investigation pertained solely to the personal conduct of the individual concerned, and that it was an isolated case.
"MACC has further confirmed that neither Sunway Construction nor any of its subsidiaries are under investigation under any provision of the MACC Act 2009," it said in a filing to Bursa Malaysia.
Meanwhile, CGS International Securities Malaysia Sdn Bhd sees this development as a positive catalyst while also removing a key overhang on the stock.
"Also, given its strong brand equity and parent company, we believe this could pave the way for more external construction wins," it said in a separate note.