Shares rise but no big leaps seen after RM1b contract flow

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KUALA LUMPUR (Feb 13): Over RM1 billion worth of new contract wins for Malaysian firms across two key industries were announced yesterday, but it appeared that investors were not yet convinced that such order book growth could provide an impetus to near-term corporate earnings.

At the time of writing, piling and foundation specialist Econpile Holdings Bhd edged up one sen to 49 sen with a total of 14.28 million shares done. The company announced yesterday it secured a RM209.3 million contract for basement and substructure works for phase two of Pavilion Damansara Heights' mixed development in Jalan Damanlela here.

Kerjaya Prospek Group Bhd rose three sen to RM1.28 in thin trade totaling 163,200 shares, after winning a RM280 million contract from HCK Capital Group Bhd to build the main building for a development project in Subang Jaya.

Meanwhile, upstream oil and gas player Velesto Energy Bhd — which bagged a US$38 million or RM155 million contract extension to provide high pressure high temperature (HPHT) jack-up drilling rig and services for North Malay Basin, Malaysia — inched up one sen to 21.5 sen, with a total of 20.05 million shares done.

And despite announcing a string of nine contracts worth at least RM448.09 million in aggregate, shares in Serba Dinamik Holdings Bhd rose 1.89% or seven sen to RM3.78, with a turnover of 545,600 shares.

Brent crude oil has recovered to US$63.04 per barrel, from US$50.47 on Dec 24.