Gamuda's share price up as analysts expect group to secure role in MRT3

PETALING JAYA: Gamuda Bhd’s share price rose 0.83% this morning on anticipation of the group securing a role in the Mass Rapid Transit Line 3 (MRT3) project, despite talk of the project being led by a foreign contractor.
At 11.09am, Gamuda’s share price was 0.83% or 4 sen higher at RM4.84 with a total of 441,000 shares traded. The stock closed one sen lower at RM4.80 yesterday with some 20 million shares traded.
The stock has been on the downtrend since news of the scrapping of the project delivery partner (PDP) model for MRT3 broke, on fears of the group’s reduced prospects for MRT3 and associated loss of PDP income under the project’s new tender structure.
Yesterday, KAF Research said in its report that Gamuda is still expected to emerge with a role in MRT3, backed by its local expertise and track record, particularly in dealing with the limestone formations with karstic features that occupy most of Kuala Lumpur.
HLIB Research said Gamuda is in a prime position to secure tunneling works for the project as it is the only contractor with the expertise in the country.