Stock With Momentum: Deleum

This article first appeared in The Edge Financial Daily, on September 27, 2018.
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Deleum Bhd (-ve)

Deleum Bhd (fundamental: 1.8/3; valuation: 2/3), which made it to our stocks with momentum list yesterday for the third time this year, closed 10 sen or 9.43% higher at RM1.16.

The stock saw 2.41 million shares done, much higher than its 200-day average of 379,891 shares.

On Tuesday, the group said it had bagged two three-year contracts from Petronas Carigali Sdn Bhd to provide an integrated corrosion solution, together with one contract from Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd for oilfield services.

The two contracts from Petronas Carigali started this month. Both provides one-year extension options. The Shell contract, also a three-year job, begun in late August and provides an option to extend for two years.

It said the value of the contracts will depend on the agreed rates and the work order issued.