Hot Stock Gamuda soars following news reports of MRT line 2 confirmations

by **Cals** Mon 17 Mar 2014, 17:06

Hot Stock Gamuda soars following news reports of MRT line 2 confirmations

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Monday, 17 March 2014 16:24

KUALA LUMPUR (Mar 17): Gamuda Bhd stocks as much as 5.1% on Monday on news that MRT line 2 has been approved by the government, and was among the top gainers on the stock exchange today.

At 3:44pm today, Gamuda rose 22 sen to RM4.5 per share with some 6 million shares traded.

The performance of the stock was also on the back of positive comments from analysts as the company is seen as a "frontrunner" for the line 2 projects

Analyst Hoy Ken Mak of AmResearch said: We see the expected endorsement of the Klang Valley MRT2 line as a positive re-rating catalyst for Gamuda, where the group is a frontrunner together with partner, MMC Corp.”

AmResearch has a “Buy” rating on the stock with a fair value of RM5.40.

Meanwhile, analyst Chong Tjen San of Hwang DBS Vickers Research told theedgemalaysia.com in a that there were expectations that Gamuda would be the project delivery partner and tunnelling contractor for the MRT line 2 projects.

Chong added that this was likely the reason for the share price gain today.

Hwang DBS Vickers Research had rated the stock a Buy last month with a target price (TP) of RM5.40.

In local news reports on Friday, Chief Executive Officer of MRT Corporation, Datuk Wira Azhar Abdul Hamid said that the company was waiting for the official announcement to enable it to begin work on the MRT Line 2, which will probably link Sungai Buloh with Putrajaya.