Wednesday, March 9, 2011

Mudajaya advances on bonus plan

KUALA LUMPUR: Shares of MUDAJAYA GROUP BHD [] advanced in early trade on Wednesday, March 9 after proposed a bonus issue of up to 137.08 million new shares on the basis of one bonus share for every three shares held.

At 9.16am, it was up 12 sen to RM4.82 with 288,700 shares done.

The FBM KLCI rose 4.03 points to 1,521.69. Turnover was 152.62 million shares valued at RM130.36 million. There were 224 gainers, 36 losers and 119 stocks unchanged.

OSK Research is maintaining its BUY rating on Mudajaya and target price of RM7.44 based on a 20% discount to its Sum of Parts (SOP) valuation.

It said the immediate term catalyst would be the award of the RM5 billion Janamanjung EPCC, in which it expected the company to participate in the civil portion potentially worth RM800 million to RM1 billion.

'Mudajaya remains as one of our top sector picks,' it said.

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