MRCB advances on contract, FV RM2.56

KUALA LUMPUR: Shares of MALAYSIAN RESOURCES CORP [] Bhd (MRCB) climbed on Monday, Oct 17 after it secured a RM46.5 million project and on expectations the government would roll out more CONSTRUCTION [] projects. The positive sentiment was also underpinned by the firmer regional markets.

At 11.44am, MRCB was up five sen to RM1.93. There were 8.00 million shares done ranfing from RM1.91 to RM1.96.

MRCB was awarded the Kuala Sg Pahang breakwater Phase 2 project worth RM46.5 million. RHB Research Institue had accorded a fair value of RM2.56.

“We have turned positive on the construction sector as there is now even more urgency for the government to expedite the roll-out of various public projects to pump prime the local economy to shield it against the increased risk of the global economy slipping into a double-dip recession,” it said.

RHB Research said for MRCB, there was a strong likelihood of it being offered a dual role -- as a project manager and developer -- by parent Employees Provident Fund (EPF) to redevelop the 2,680-acre Rubber Research Institute (RRI) land in Sungai Buloh.

Another factor was the 60:40 JV between Ekovest and MRCB was poised to bag the beautification portion worth RM1bn of the initial phase of the River of Life project.