MANILA - Shares of contractor Megawide Construction Corp rose as much as 7.7 percent in early trade on Monday, after the Philippine government announced over the weekend that the company had bagged a $390-million airport modernization deal.
The transportation department on Saturday said it awarded the contract to renovate, expand and operate the Mactan-Cebu international airport under the Public-Private Partnership (PPP) program to Megawide and its Indian partner GMR Infrastructure Ltd.
"Now, there's no overhang," Lexter Azurin, head of equity research at Unicapital Securities Inc, said regarding the impact of the contract on Megawide's share price.
Before the announcement, Megawide shares had fallen 10.7 percent as it was competing with another bidder for the airport tender.
In December, rival firm Filinvest Development Corp had sought GMR-Megawide's disqualification from the bidding.
Filinvest Development shares were down 1 percent and the main share index was up 0.8 percent.
Azurin said Megawide's "aggressive" participation in the government's PPP initiative was "beneficial to its long-term earnings prospects."
Other than the airport deal, the contractor has also bagged a hospital modernization and two nationwide-school building contracts under the state's flagship infrastructure program.