Cahya Mata Sarawak falls 9.1% despite contract extension

PETALING JAYA: Cahya Mata Sarawak Bhd fell 9.1% in early trade to a low of RM2.30 despite being granted extension for its road maintenance contract by the state government.
At 11.07 am, the stock was trading at RM2.42 with 3.70 million shares done.
CMS said in a filing with Bursa Malaysia yesterday that its indirectly owned subsidiary CMS Roads Sdn Bhd had received a letter last Thursday from the Sarawak government informing of the contract extension.
The one year extension is on top of the six-month extension that was granted on Dec 4, 2017, from Jan 1, 2018 to June 30, 2018.
The contract extension is worth RM180 million and is expected to contribute positively to the group's earnings during the tenure of the contract.