Why did Ekovest and IWCity shares fall after Bandar Malaysia clarification?

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Ekovest and IWCity Shares Declined Following Clarification on Bandar Malaysia Project Involvement

Shares of Ekovest Bhd and Iskandar Waterfront City Bhd (IWCity) experienced a decline after both companies issued statements to Bursa Malaysia clarifying their non-involvement in the reinstatement of the Bandar Malaysia project. This clarification followed a significant surge in their share prices the previous day, which was triggered by a press release from the Prime Minister's Office on April 19, 2019, that mentioned IWH-CREC Sdn Bhd.
Clarification Issued to Bursa Malaysia

Both Ekovest Bhd and IWCity formally communicated to Bursa Malaysia that they were not involved in the Bandar Malaysia project's reinstatement. This direct statement from the companies aimed to address market speculation and provide clarity to investors regarding their participation in the development.
Previous Share Price Surge Based on Media Release

The share prices of Ekovest and IWCity had previously hit their respective limit-up levels on April 22, 2019. This surge was a direct reaction to a press release issued by the Prime Minister's Office on April 19, 2019, titled "Government to Restate Bandar Malaysia Project," which referenced IWH-CREC Sdn Bhd, a company associated with a common major shareholder.
Investor Caution Advised

In light of the developing situation and the subsequent clarification, both Ekovest and IWCity advised their investors to exercise caution. They recommended that investors make informed decisions when trading their respective shares and warrants, acknowledging the market's sensitivity to such announcements.
Significant Trading Volume and Price Drop

As of 11 am on April 23, 2019, Ekovest Bhd shares had fallen by 10.5 sen to trade at 86.5 sen, with approximately 149.61 million shares changing hands. Concurrently, IWCity shares slipped by 14 sen to RM1.18, with a trading volume of around 124.03 million shares, indicating substantial market activity following the clarification.

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Why did Ekovest and IWCity shares fall after Bandar Malaysia clarification?

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