GLC versus PLC: SO WHAT'S THE BIG DEAL

The daily charts of MRCB, UEM Builders, Equine and Scomi. Verify what happened after 8th of March 2008.
Mr Siow Chen Ming in his column "BIG MONEY" in THE EDGE March 24th edition succintly put forth the changing nature of Politically-linked Companies (PLC) like SCOMI and EQUINE CAPITAL BHD from being an "asset" to a "liability" in just one day i.e March 8 when BN lost the two-third majority status in Parliment. Scomi is owned by Kamaluddin, the son of PM Abdullah Badawi whilst Equine is owned by Datuk Patrick Lim, said to be a close associate of Kamaluddin.
In a matter of 24 hours, scomi share price dropped by 24% after the polls.

Meanwhile, GLC (Government-linked companies) like MRCB (Malaysian Resources Corp Bhd) and UEM Builders Bhd (UEM Builders) are going to feel the pressure in terms of implementation delays. Hence investors and punters alike are jittery and a massive selldown occured in both counters. MRCB has RM1.2 billion Penang Monorail Project while UEM Builders has the RM3.0 billion Second Penang Bridge Project. Both projects are in question since Penang is now under BA rule.

Hence both GLC and PLC have been affected in one way or another. This issue of political risk has never been considered or taken for granted before by most investors especially local ones.