Stock With Momentum: Mudajaya Group

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This article first appeared in The Edge Financial Daily, on April 6, 2017.

 

Mudajaya Group Bhd (-ve)

SHARES in Mudajaya Group Bhd (fundamental: 0.35/3, valuation: 0.9/3) triggered our momentum algorithm yesterday as the counter closed 11 sen higher at RM1.21.

The construction company bagged an RM58.29 million contract from Prasarana Malaysia Bhd to undertake the supply and delivery of precast pier caps and other related works under Package PC2 of the light rail transit Line 3 project linking Bandar Utama in Petaling Jaya to Johan Setia in Klang. The group said its wholly-owned subsidiary Mudajaya Corp Bhd accepted the award of the contract on Tuesday from Prasarana. The project is expected to commence by the second quarter of this year, targeted to be fully completed by the end of 2019.

The stock had risen by 10% at market close to give it a market capitalisation of RM646.1 million. It saw some 15.6 million shares traded, compared with its 200-day average of just 429,941 shares.