Steel, building materials counters rise on ECRL revival

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KUALA LUMPUR (April 15): Steel as well as building materials counters were up on optimism going forward after the government announced last Friday the revival of the East Coast Rail Link (ECRL) project as it slashed the cost by 32.8% to RM44 billion.

As at 10.25am, Press Metal Aluminium Holdings Bhd was trading 11 sen or 2.4% higher to RM4.64, while Lafarge Malaysia Bhd was up by one sen or 0.4% to RM2.49. Ann Joo Resources Bhd was also trading higher by one sen or 0.6% to RM1.80.

On Friday the government announced the ECRL project will proceed at a reduced cost of 32.8% to RM44 billion compared to its original cost of RM65.5 billion. Commuters will also benefit from the double-tracking of the shorter, rerouted railway line.

Under the supplementary agreement signed earlier between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Co Ltd (CCCC), the ECRL will now be 40km shorter for a total of 648km and pass through Jelebu, Negeri Sembilan, instead of Gombak in the Klang Valley.