Tuesday, June 28, 2011

Gadang rises on expectations of RM200m Perak job

KUALA LUMPUR: GADANG HOLDINGS BHD [] shares rose on Tuesday, June 28 on market talk that it was the frontrunner for the RM200 million contract for earthworks in Perak.

At 2.31pm, it was up three sen to 69 sen. There were 637,200 shares transacted at prices ranging from 65 sen to 69 sen.

CIMB Retail Research said Gadang was poised to win the contracts, which is part of a US$2.5 billion infrastructure development by Brazil's Vale International SA, the world's second largest mining company. This will be Vale's maiden award for the project.

The research house said an official announcement could be made by as early as this week.

Recent news reports said BT recently reported that Vale had shortlisted seven Malaysian companies for the first phase of the project. Among them are MUHIBBAH ENGINEERING (M) BHD [], Sunway CONSTRUCTION [] Bhd, DRB-HICOM BHD [] and KYM Holdings.

'It is firmly believed that Gadang is favoured because it had submitted the lowest bid and the company is committed to finishing the job within the time frame given,' said CIMB Research.

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