Tuesday, February 2, 2010

RM1b construction jobs awarded in January

A total of RM1.05 billion worth of construction contracts have been awarded in January, according to ECM Libra Investment Research.

In its research note, ECM Libra said they included the oil terminal engineering, procurement and construction works valued at RM593.3 million awarded to Singapore-listed PEC Ltd by ATT Tanjung Bin Sdn Bhd and the second package of Low-Cost Carrier Terminal contract worth RM291.1 million to Gadang Holdings Bhd.

Other jobs involved the RM134.2 million contract to Bintai Kinden Corp Bhd by National University of Singapore and the RM35.8 million contract to Hock Seng Lee by Public Works Department, it said.

ECM Libra said the construction sector's mid-term outlook would depend on the 10th Malaysian Plan which would be unveiled in June this year.

"As such, we maintain our neutral stance on the construction sector and advise investors to take profit on news of jobs win," it said.

It said the expected road jobs worth RM68.6 billion to be awarded by the Indian government by June this year would be a positive news for the Malaysian construction companies which had significant exposure in the country.

Among construction companies that were expected to benefit were IJM Corp Bhd, Sunway Holdings Bhd and Mudajaya Group Bhd, it said. - BERNAMA

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