KUALA LUMPUR (Oct 9): Shares of Gamuda Bhd remained actively traded in the afternoon session, with 44.43 million shares done as at 3:13pm. It was the third most active counter on Bursa Malaysia.
The group’s share price was up one sen or 0.41% at RM2.44 at the time of writing, giving it a market capitalisation of RM6.05 billion. Yesterday, Gamuda’s stock closed 24% or 78 sen lower at RM2.43, following news on the terminating of MMC Gamuda KVMRT (T) Sdn Bhd underground contract for the Mass Rapid Transit Line 2 (MRT2) project. It lost RM1.92 billion in market capitalisation in one day.
MMC Gamuda KVMRT is a 50:50 joint venture (JV) between Gamuda and MMC Corp Bhd.
MMC Corp also saw its shares rebound by five sen or 4.42% to trade at RM1.18 at 3:16pm, giving it a market cap of RM3.56 billion. The stock ended yesterday 22 sen or 16.3% lower at RM1.13, losing RM669 million in market cap.
MMC Corp’s shares were not as actively traded as Gamuda, with 1.06 million shares done at the time of writing.
In a four-page statement yesterday, MMC-Gamuda KVMRT said it was not given a fair chance to work out the cost reduction for the underground works of MRT2 as the Ministry of Finance (MoF) did not reveal the target it wants to achieve.
However, the JV company said it remains open to further discussions with the MoF in reaching an agreeable reduction.
Both MMC and Gamuda said so far, they have not received any notice from MRT Corp Sdn Bhd or the government pertaining to the termination of the MRT2 underground contract.