Malaysia’s PJI, Sumatec higher on Sudan rail job talk

KUALA LUMPUR, Jan 26, 2004 (AFX-ASIA) — PJI Holdings Bhd and Sumatec Resources Bhd were higher in the morning on talk they will win the 4.62 bln rgt railway construction job in Sudan, dealers said.

At 9.56 am, PJI was up 0.38 rgt at 5.10 on volume of 619,300 shares while Sumatec rose 0.16 rgt to 3.06 on 530,100 shares.

The KLSE Composite index rose 4.72 points to 829.38.

“The two stocks are up on talk that they will secure the 4.62 bln rgt Sudan rail project,” a local brokerage dealer said.

He added that investors are probably buying the shares of the two companies because the contract will obviously have positive impact on their earnings.

Financial weekly The Edge, quoting unnamed sources, reported that the companies are likely to announce this week that they have secured the railway construction contract in Sudan with a bid of 4.62 bln rgt.

PJI, a mechanical and electrical engineering firm, and Sumatec, which is involved in oil and gas engineering services, will undertake the project via a 70:30 joint-venture company Trans Africa Railway Corp Sdn Bhd.

PJI group chief executive officer and managing director PJ Lee said in December last year that the joint-venture had received a letter of intent from the Sudan government for the construction and maintenance of a 850-kilometer railway track in Sudan, and was waiting for the letter of award.

India’s Ircon International Ltd will be subcontracted to construct the railway tracks while PJI will focus on the mechanical and engineering works.