Stock With Momentum: Minetech Resources

This article first appeared in The Edge Financial Daily, on October 22, 2019.
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Minetech Resources Bhd (-ve)
TRADING of the shares in Minetech Resources Bhd (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year.

The counter rose one sen or 14.29% to close at eight sen, after 11.38 million shares were transacted, 23 times more than its 200-day average volume of 489,217 shares.

The Main Market-listed quarry network operator announced on Oct 9 that its wholly-owned Minetech Construction Sdn Bhd (MCSB) had secured a RM17.9 million subcontract for the Gemas-Johor Baru electrified double-track project.

MCSB accepted the letter of award from Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd to undertake and complete the project’s Section 4 bridge works. The work will commence this month and be completed by the third quarter of 2020.