Showing posts from January, 2012

Gamuda: In discussion with banks to fund potential projects commentary

According to sources, Gamuda  (GAM MK, Sell, TP: RM2.94)  has started discussion with a consortium of banks for a multi-billion ringgit facility to finance the slew of mega projects that it would be undertaking soon, which includes the Klang Valley MRT (KVMRT) and the RM7bn Electrified Double Track Railway Project (EDTP) from Gemas to Johor Baru. For the KVMRT project, Gamuda together with its project project delivery partner, MMC Corp Bhd, are mandated to lead the implementation and delivery of the MRT. Currently, Gamuda-MMC are still in the running for the RM4bn tunnelling portion of  the KVMRT project. Gamuda has confirmed that it has been invited by China Railway Construction Co as one of its local construction partners for the upgrading of the RM7bn Gemas-Johor Baru railway line to an electrified double-tracking track. (StarBiz)
Comment by ECMLibra
: We believe the recent run-up in Gamuda’s share price has discounted the firm possibly undertaking the Gemas – Johor Baru EDTP with …

Bursa Malaysia Stock Exchange Performance by Sector 2011

Bursa Malaysia Stock Exchange Sector Performance 2011Above: Performance by Sector (click to enlarge)Consumer sector took the lead, supported by its ‘recession-resistance’ attribute. The Consumer Index was the top performer and the sole gainer among all the indices after having registered a gain of 1.5% in 2011. It is not at all surprising that the Consumer sector managed to outperform all the other sectors due to its well-known ‘recession-resistance’ attribute.  During a period of heightened economic uncertainties, investors generally put more faith in companies with are expected to be least subjected to the cyclicality of the economy. We have a Neutral recommendation on the Consumer sector.

Technology Index
…the biggest loser.  The Technology Index recorded the worst performance of
-26.1% in 2011. That makes it two successive years at the chart bottom. Nonetheless we reiterate our view that the semiconductor sub-sector is expected to outperform its broader sector as we believ…