September 23, 2013

Wah Seong Shares Up On Petronas Contract Win

Shares of Wah Seong Corporation Bhd rose as much as 7 percent after the oil and gas services firm announced it secured a RM232 million pipe-coating services contract from Petronas.

The counter was up 4.73 percent at RM1.77, outperforming the benchmark key index’s 0.11 percent drop.

“We view the contract award positively,” Hong Leong Investment Bank said in a research note on Monday.

“This is the second contract won after it has been awarded a US$200 million pipe coating contract by Statoil in February.”

The research house maintained its “hold” rating on Wah Seong with an unchanged target price of 1.66 ringgit.