By Levina Lim & Lyana Shohaimy of theedgemalaysia.com | Business | The Edge Malaysia – 2 hours 24 minutes ago
KUALA LUMPUR (Oct 25): Deleum Bhd rose as much as 6% after the firm said it has clinched a gas turbine- maintenance contract from Petroliam Nasional Bhd (Petronas).
At 10.05am, Deleum was traded at RM4.30 with 164,200 shares done. The bourse's third-largest gainer had earlier risen as much as 24 sen to RM4.32.
Deleum Bhd said under the Petronas contract, Deleum is offering after-market turbomachinery maintenance services for Solar Turbines Inc's gas turbines in Malaysia.
The seven-year contract has been effective since September 16 this year, according to Deleum. Petronas has the option to extend the deal for another three years.
Analysts have anticipated Deleum will attract market interest today.
"In terms of interesting corporate developments, there may be added interest today in Deleum, which has been awarded a contract (for an undisclosed value) by Petronas to provide aftermarket turbo machinery maintenance services for gas turbines in Malaysia," HwangDBS Vickers Research Sdn Bhd wrote in a note today.
From a technical viewpoint, RHB Research Institute Sdn Bhd technical analyst Mohammad Ashraf Abu Bakar said the firm has a target prices of RM4.10 and RM4.50 for Deleum shares.
"Buy on rally continuation above RM3.85," Mohammad Ashraf wrote in a note today.