Quick take: Gamuda, MMC advance higher in early trade

KUALA LUMPUR: Shares in MMC Corp Bhd and Gamuda Bhd rose in early trade Monday after the companies inked supplemental agreements for MRT2 project.

Gamuda, one of the top gainers on Bursa Malaysia, rose 2.2%, or nine sen to RM4.19 with over one million shares traded. MMC added 0.51% to 99.5 sen.

Gamuda and MMC have signed two agreements with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) in relation to the MRT2 project.

The first agreement is a supplemental agreement to the project delivery partner (PDP) agreement between MMC Gamuda KVMRT (PDP SSP) Sdn Bhd and MRT Corp.

The second is a novation agreement between PDP SSP, MMC Gamuda KVMRT (T) Sdn Bhd and MRT Corp.

Gamuda said the agreements were to formalise the role of PDP SSP to deliver and be responsible for the design, execution and completion of the entire KVMRT SSP Line on a turnkey basis.

In a separate statement, the Finance Ministry said the agreements conclude the rationalisation process which succeeded in reducing the cost of the MRT2 project to RM30.53bil from RM39.35bil, a saving of RM8.82bil or 22.4%.