Construction counters dip as govt retenders MRT2 underground work

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KUALA LUMPUR (Oct 8): Construction counters this morning reacted negatively to news of the government's decision to retender MRT2's underground work, after terminating MMC-Gamuda KVMRT Sdn Bhd as the contractor.

But while most have fallen within the region of 1% to 2%, IJM Corp Bhd fell the most, dropping 9.5% or 17 sen to RM1.62, with 5.12 million shares done.

Others that retreated included Ahmad Zaki Resources Bhd, which fell 5.13% or two sen to 37 sen, and Econpile Holdings Bhd, which fell 5.92% or 4.5 sen to 71.5 sen.

Sunway Construction Group Bhd declined 10 sen or 5.71% to RM1.65, while Gabungan AQRS Bhd dipped 2.94% or three sen to 99 sen.

Yesterday the government said it had terminated the underground work contract of the MRT2, which had initially gone to the joint venture between Gamuda Bhd and MMC Corp Bhd.

It said the unfinished work would be retendered via an international open tender exercise.

The proprietary day traders (PDT) and intraday short selling (IDSS) activities for Gamuda and MMC were suspended today after their shares dropped more than 15 sen or 15% from reference price.

The activities will be enabled at 8.30am on Tuesday (Oct 9). At 12:30pm, Gamuda shares were down 68 sen or 21.18% to settle at RM2.53 while MMC dropped 23 sen or 17.04% to RM1.12.