Hot Stock Muhibbah falls 18% after co not named Petronas regasification contract winner

by **Cals** Mon 17 Nov 2014, 17:53

Hot Stock
Muhibbah falls 18% after co not named Petronas regasification contract winner

KUALA LUMPUR (Nov 17): Muhibbah Engineering Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) fell as much as 18% after the firm was not named as the builder for Petroliam Nasional Bhd's (Petronas) planned RM2.7 billion
regasification facilities.
Muhibbah fell as much as 45 sen to RM2.11 before reducing losses. At about 3.45pm, the stock was traded at RM2.28.
Muhibbah was the most-active counter with some 38 million shares changing hands.
An oil and gas analyst told the theedgemarkets.com that the drop in Muhibbah's share price was due to "confusion" over the winning party for the regasification facilities contract given out by Petronas.
“It did not go to Muhibbah, but they did not mention that they were bidding to begin with.
“They are concentrating on other parts of Pengerang, Johor – the construction of refinery and petrochemical facilities instead,” he told theedgemarkets.com over the telephone.
According to the analyst, Muhibbah's share price drop might also be due to a “prominent” fund management company selling its stake across its O&G holdings.
Last Friday, Dialog Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) said it had signed a shareholders’ agreement with Petronas Gas Bhd to undertake the regasification project.
The project comprises a a regasification unit and two liquefied natural gas storage tanks.
Today, Dialog rose as much as three sen or 2% to RM1.59 before erasing gains.
The stock changed hands at RM1.52 at about 3.50pm.