KUALA LUMPUR: OSK Research is maintaining its Overweight on the CONSTRUCTION [] sector after 17 companies or their subsidiaries and joint ventures pre-qualified to be the main contractor for the multi-billion-ringgit LRT extension projects in the Klang Valley.
The research house said on Thursday, April 29 this recent piece of news is clearly positive for sentiment in the construction sector.
“As such, we retain our OVERWEIGHT rating on construction, fuelled by more positive news flow in the coming months. Our top picks are Mudajaya and WCT,” it said.
Syarikat Prasarana Negara Bhd announced on Wednesday the list of 17 prequalified applicants for the main contractor of the LRT extension. Another 15 applicants were also prequalified for the supply of segmental box girders (SBGs).
“We expect the bidding to be intense among the prequalified contractors. An award for the Kelana Jaya line could be made as soon as June. Potential winners are Gamuda, IJM, WCT, MRCB and Mudajaya based on their track record. Maintain OVERWEIGHT on construction,” it said.