KUALA LUMPUR (July 9): Shares of WCT Bhd Holdings jumped 6.4% in early trade today after the Arbitral Tribunal in Dubai had ruled in favour of WCT regarding the Nad Al-Sheba Racecourse case.
At 9.03am, WCT rose 8 sen to RM1.33 with 332,200 shares done.
Hong Leong IB Research has tactically upgraded WCT Holdings Bhd to “Buy” at RM1.25 with an unchanged target price of RM1.73.
In a note today, the research house said the Tribunal had requested Meydan LLC to pay WCT a sum of AED1.1 billion (RM1.2 billion).
“As a result, WCT could potentially write back RM867 million and reduce its net gearing significantly from 72% to 20%.
“Tactically upgrade to Buy with unchanged target price of RM1.73.
“The rights (WCT-OR) offers a cheaper entry,” it said.