Mudajaya shares see bright outlook

SHARES of construction company, Mudajaya Group Bhd, opened 10 sen higher at RM4.80 following its proposed corporate exercises involving a 1-for-3 bonus issue and employees share option scheme.

At 12.30pm, its share rose 17 sen to RM4.87.

OSK Research said it expected Mudajaya share price to run up today following the announcement of the bonus issue.

It maintained its "buy" call on Mudajaya with a target price of RM7.44.

In a research note today, OSK said the company remained one of its top sector picks.

"The immediate term catalyst would be the award of the RM5 billion Janamanjung engineering, procurement, construction and commissioning contract," it said.

Mudajaya was expected to participate in the civil portion potentially worth RM800 million to RM1,000 million. -- BERNAMA