Recent Gamuda (stock code 5398)

Gamuda is one the not many property developer that been in correction for the last few days. See Gamuda daily chart above. What the reason behind? Is it already corrected to an attractive price for a short-term buy?

Prior to 17 Nov, Gamuda been acquired and disposed (rinse and repeat) by EPF and HSBC Holding plc U.K. (could be a nominee for a hedge fund).  And on the last few days, they been profit-taking (see the 3 black candlesticks)

Recent announcement:
EMPLOYEES SHARE OPTION SCHEME (SCHEME) 25 Nov 09
..........additional 85,000 new ordinary shares of RM1.00 each issued pursuant to the aforesaid Scheme will be granted listing and quotation with effect from 9.00 a.m., Monday, 30 November 2009.

The new ordinary shares owners can be very eager to sell when the shares get listed started 30 Nov 09. Anyway, 85,000 no. shares is not that many,  I don't think it can really dilute the price.  Also, before this, 312,000 no. of new shares already listed on 12 Nov 09.  

Can it rebound good soon?  First, the 3 black crow (almost) candlestick formed is a bearish pattern, that made the price will be more on bearish mode and any rebound shall be weak. Also, technically, the minor support (RM 3.05) already breached, that made the downtrend probably will go to the next support, that around RM 2.50. For that reasons, I prefer to let at least a week passed first before looking at it again. Note that n

ext AGM is on 17 December 09.

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KLSE Construction Stocks in play throughout 2010?

Construction Sector's stocks will stay in play throughout whole 2010? Yes, very strong likely. With multi billion infrastructure projects, we will see more of them. As the MP10 (2010-2015) government's spending would be within RM230 billion, construction stocks will stay be our focus  throughout 2010. (the government expects more of private sector's role which is we need to wait and see after Northern Corridor and Eastern Corridor?)

 

 

Here

is some major infrastructure projects:

9MP projects flowing into 10MP:

Double tracking rail – Northern (Ipoh-Padang Besar) RM12,485 mil
Construction in progress (estd. 30% completed).
Main contractor is MMC-Gamuda JV.

Double tracking rail – Southern (Seremban-Gemas) RM3,400 mil
Construction in progress (estd. 10% completed).
Main contractor is IRCON, while sub-contractors are IJM Corp, Loh & Loh, and Fajar Baru.

Pahang-Selangor water transfer (45km tunnel) RM1,300 m
Land clearing started.
Main contractor is Shimizu-NishimatsuUEM Builders-IJM Corp consortium.

Pahang-Selangor water transfer (upstream: Kelau Dam,pumping station,pipes) RM1,200 mil
Pre-qualification for some packages have started. We expect first award from end-2009.
Potential beneficiary is Loh & Loh.

Sepang low cost carrier terminal  (LCCT)  RM2,000 mil
Bidding for the main work packages is ongoing.
The project is scheduled for completion by 3Q2011. First award expected this week.

Klang Valley LRT extension (Kelana Jaya-Putra Heights-Sri Petaling, 17km x 2)  RM7,000 mil
Proposed line alignment is opened for public comments until 15 Dec 09.  We expect the first award in 1Q2010. IJM Corp, Gamuda, WCT, Sunway, Loh & Loh, UEM Builders, Mudajaya, MRCB and Scomi are the potential beneficiaries.

Penang Second Bridge RM`4,300 mil
Main cont

ractors are CHEC (sub-structure), and UEM Builders (upper structure)

East Coast Expressway, Phase 2 RM 3,000 mil
Package 10 under MTD Cap is >6)% completed, while construction progress on the other packages are believed to be slow (<30% completed).

 

Projects likely to start during 10MP :  

Double tracking rail – Southern (Gemas-Johor Baru) RM 8,000
Chinese contractors have been offered a role in project construction during PM Najib’s diplomatic visit to China on 2-5 Jun, 2009.

Pahang-Selangor water transfer (downstream: Langat  2 treatment plant) RM 5,000
Kumpulan Darul Ehsan has been awarded the contract in Feb ’08 by the federal government.  Main contractor is likely to be Kumpulan Perangsang Selangor, being a 60%-subsidiary, while Gamuda and Loh & Loh may benefit from sub-contracting works.

New Klang Valley LRT line (Kota Damansara-Cheras) (40km) RM 9,000 mil
All major contractors, i.e. IJM Corp, Gamuda, WCT, Sunway, Mudajaya, UEM Builders, MRCB and Scomi could be eyeing for a piece of the works.

Bakun Undersea Cable  RM 9,000 mil
Project owner is Sarawak Hidro, a unit of the MoF. Earlier, it was expected that MRCB could be appointed the contractor.

Papar-Penampang (Sabah) dam and water treatment plant RM 2,800 mi
Approved by the Sabah state government in Apr 09, the project is believed to be a private finance initiative (PFI) project.  Likely beneficiary is WCT.

Total RM 68,485 mil (RM 68.48 billion)

Note: Projects in orange font are yet to be awarded

Project list source: Maybank Investment

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MRCB code 1651

Malaysian Resources Corp. Bhd : MRCB : stock code 1651

Another counter in my watch list. One the counters that I will consider for buy if it seem the whole market is on bullish side. Also in construction sector - should follow construction sector 'in' trend.

Technically, many of the bear already out by reflects by the correction (end of June) and zig-zag period. 2 higher low created a bullish up trend. Anyway, no obvious new bulls coming in a large way. Also, volume is not comparatively high but the counter should be among the actively trade in coming days.

Strong resistance is at RM1.51, any strong breakout from level is a sign it will run far.  If 1.51 is the target (resistance) for short-term, it is not much of a potential for short-term trade but for few weeks holding, the potential is great (over 1.75 -1.95). Minor support is around 1.30 : if collapsed should be taken as early bearish signal. 1.05 is the main support for now.

As at time of writing, it is at 1.37.
For me, I am not consider it as a buy now because of believe so any bullish overall market trend will be short-lived. The short-term potential is not that attractive.

Will be in my watch list for buying opportunity after the whole market is more 'clear'.

Price at around the support zone is RM1.05 is very attractive.

MRCB homepage

MRCB research info at businessweek.com

MRCB Daily chart: (click for enlarged view):

MRCB weekly chart: (click for enlarged view):

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