KUALA LUMPUR: CIMB Equities Research is retaining its underweight recommendation on the construction sector on news the Ministry of Finance would terminate MRT 2’s underground contract, replacing it with an international tender.It said on Monday the cost for MRT 2’s above-ground portion will be cut by 23% to RM17.4bil with no cancellation of stations. MMC-Gamuda JV will play a turnkey role.“Termination of MRT 2’s underground scope is a negative surprise. Its closing price was RM1.79.IJM Corp is among the larger work package contractors for MRT 2. It secured the RM1.5bil viaduct and stations package, with zero exposure to the underground scope.CIMB Research has a hold for YTL Corporation with a target price of RM1.40. Its closing price was RM1.25.“YTL Corp has zero exposure to MRT 2.

Source: thestar October 08, 2018 00:33 UTC