Zelan Bhd (-ve)
ZELAN Bhd (fundamental: 0/3, valuation: 0.3/3), which made it into our Stocks with Momentum list yesterday for the second time this year, closed unchanged at 10 sen, which gave the group a market capitalisation of RM84.49 million.
The stock saw 75.01 million shares traded yesterday, compared with its 200-day average trading volume of 2.59 million shares.
On Monday, the group announced that it was launching arbitration proceedings against NRY Architects Sdn Bhd to claim for up to RM305.4 million over the construction of buildings for the International Islamic University Malaysia in Kuantan.
Zelan said NRY had breached a contract signed in May 2013 with Zelan’s wholly-owned unit Zelan Construction Sdn Bhd.
The bulk of the sum it is claiming for is for loss of income (RM261.12 million), with the remainder for payment of rental claims, refunds and other utility costs. It is also seeking a declaration from NRY that the latter had breached its contract with Zelan.