The market is pricing in election
risk. The flow of contracts could be affected if the opposition coalition wins
the election. The opposition has also indicated that it wants to review the
mega projects, which could have an impact on projects Gamuda has already
secured.
Another concerns about Gamuda’s property arm, which is expected
to see a slowdown, particularly in
Vietnam .
In 50:50 JV with MMC Corp, Gamuda has secured the lion’s share of
Klang
Valley ’s MRT construction and
engineering works, including the rm8.2 billion contract to construct a 9.5km
underground tunnel and seven underground stations.
The MMC-Gamuda JV is the project development partner for the MRT
project.
This brings Gamuda’s order book to over rm4.8 billion/
The stock may
rebound when the political risks subside and there is more news flow on infra
projects.
Another potential
catalyst for the construction industry is the proposed second MRT line. A firm
decision on it is expected to be made over the next two to three quarter from
Oct 2012.
Meanwhile speculation that major shareholders and directors of Gamuda
reducing their stakes in Gamuda. Market observers said that it could be a usual
portfolio reorganization in anticipation of
Malaysia ’s impending general
election.
Major shareholders and directors of Gamuda had disposed of Gamuda in
early Oct 2012. The EPF had sold 4.5 million shares. Following the sale the EPF
still holds 5.37% stake in Gamuda.
Meanwhile Raja Datuk Seri Eleena Azlan Shah, a director in Gamuda, had
sold a total of 1.9 million shares in the open market at between rm3.52 and
rm3.57 each. Followinf the sale, Eleena still owns an indirect 6.2% and a
direct 0.01% stake in Gamuda.
Another director, Datuk Ng had disposed three million shares at rm3.50
each leaving him with a remaining direct stake of 1.39% in Gamuda.
No comments:
Post a Comment