Water stocks fall after excitement fizzles out

PETALING JAYA: The shares of water concessionaires saw significant speculative buying following the deal struck between the Selangor and Federal Governments. But after reaching intra-day highs, these stocks retreated in what dealers described as a “reality check.”

The excitement surrounded news that the Federal Government would pump in an additional RM2bil to “assist” the Selangor Government in its takeover of the four water concessionaires in the state.