KUALA LUMPUR: Bursa Malaysia has suspended the short selling of MY E.G. Services Bhd's (MyEG) shares for the rest of the day under proprietary day trading (PDT) and intraday short selling (IDSS).

The suspension was made after the e-government services provider's stock dropped more than 15 per cent, or 15 sent, from the reference price.

As at 10.15am, MyEG Services Bhd slumped 19.5 sen or 20.42 per cent to 76 sen, amid news that all immigration services and processes would be fully managed by the Immigration Department by 2025.

"The short selling under PDT and IDSS will only be activated the following trading day, on Wednesday, at 08:30 am," Bursa said today.

The New Straits Times reported on Monday that by 2025, all immigration-related affairs, including those now managed by outside parties, such as MyEG, would revert to the Immigration.

Besides passport renewals and visa applications, applications and renewals of foreign worker and maid permits would be handled by the department when it rolls out its National Integrated Immigration System (NIISe), the Immigration director-general Datuk Khairul Dzaimee Daud told the NST.

Under the current Malaysian Immigration System (MyMIMMs), some services -  termed "patch-on" services - are outsourced to independent contractors.

Meanwhile, Affin Hwang Capital downgraded MyEG to "Hold" from "Buy" with a lower target price of 93 sen from RM1.23 on heightened policy risks.

"Broadly, we expect the news and policy risks to weaken investors' interest in MyEG, considering the material revenue contribution from its immigration-related businesses. 

"On the other hand, MyEG's steady 2022-2024 earnings outlook, stable revenue from the road-transport businesses, exciting new business opportunities, and potential business opportunities from NIISe related works should help support its share price," it said in a note today.

Affin Hwang, however, maintained MyEG 2022-2024 earnings forecasts.

"We now peg our price target at 19x 2023 price earnings ratio (PER) (from 25x), in line with MyEG's five-year average PER."