KUALA LUMPUR: Shares of infrastructure companies Gamuda and IJM Corporation advanced on Monday on investors' expectations the East Coast Rail Link (ECRL) would go ahead but at a smaller scale.
At midday, Gamuda was up 13 sen to RM3.23, the highest since October 2018.
IJM was up 12 sen to RM2.30, the highest since mid-May 2018.
StarBiz reported the current re-negotiations on the ECRL might see its construction price pegged at RM50mil to RM60mil per km.
It also reported the discussions would also include a commitment from the Chinese government to buy Malaysian palm oil and bring in projects.
This means the construction of the 688-km long ECRL, suspended last July after the new government found irregularities in the terms of the “lopsided” contract, would cost between RM34.4bil and RM41.3bil.
Gamuda had seven buy calls, 10 hold and five sell and the consensus rating is RM3.23.
TA Securities has a sell and TP of RM3.09 while Kenanga Research has a market perform at TP of RM2.85 but Nomura had a buy and TP of RM3.30.
As for IJM, there were five buy calls, 10 hold and seven sell. The consensus rating is RM2.86.
DBS has a buy and target price of RM2.55 while CIMB Research has a hold at TP of RM1.96 and TA Securities a sell and TP RM2.16.
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