Hot stock: Ley Choon rises over 20% after news of contract wins

SHARES of Ley Choon Group spiked in early trade on Thursday (Sep 15) morning after the construction and road works service provider announced new contract wins before the opening bell. The counter’s exuberance, however, evaporated somewhat by market close.

As at 9 am on Thursday, the Catalist-listed counter rose 23.5 per cent or S$0.004 to briefly hit S$0.021 with some 7.3 million securities changing hands at the start of trade.

By 10.47 am, it was the second-most traded counter in terms of volume after Sembcorp Marine, with Ley Choon’s share price easing to S$0.19 – S$0.002 or 11.8 per cent higher – as 19 million of its shares were traded.

The counter managed, however, to end only 5.9 per cent higher at S$0.018 as at market close on Thursday.

The underground utilities infrastructure construction and road works service provider on Thursday morning announced it secured S$67 million worth of contracts for the supply, installation and replacement of underground utilities.

This brings Ley Choon’s order book to S$207 million, to be delivered over the next 2 to 3 years.

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Singapore shares track Wall Street gains to open higher on Thursday; STI up 0.2%

Hot stock: Ley Choon up as much as 20% after S$63.4m in contract wins

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According to Ley Choon chief executive and executive chairman Toh Choo Huat, overdue upgrading works for Singapore’s underground utility system are picking up pace, with Covid-19 now “largely under control”.

The group added that it is tendering for more underground infrastructure projects and intends to continue doing so “prudently”.