Monday, February 7, 2011

BHIC near month's high, hopes of more defence contracts

KUALA LUMPUR: Shares of BOUSTEAD HEAVY INDUSTRIES CORP [] Bhd (BHIC) rose to almost a one-month high at the midday break on Monday, Feb 7 on investors' expectations the ship builder could secure more government defence contracts.

At 12.30pm, BHIC was up 26 sen to RM4.27 with 991,00 shares done. This was the highest since Jan 10's RM40.30.

Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said on Saturday the government has agreed to allocate RM6 billion to build six second generation patrol vessels for the navy,

He was quoted by Bernama as saying CONSTRUCTION [] of the ships will boost the economy while benefiting 632 vendor companies.

"Thus, we will ensure that at least RM2 billion of the allocation will benefit these vendor companies which are strategic partners of Boustead Naval Shipyard Sdn Bhd," he added. The project is due to start next year.

Ahmad Zahid also said the Lumut-Bagan Datoh coastal area has been identified for a world-class shipyard to be developed over the next 10 to 20 years.


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