Published January 7, 2009

WTC shares dive

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(KUALA LUMPUR) Shares of Malaysian construction firm WCT Bhd dived 30 per cent yesterday after the cancellation of a US$1.3 billion contract to build a racecourse in Dubai.

But the Malaysian company said that the step was a 'breach', and that it was considering all options. Dubai's Meydan LLC, which in 2007 commissioned a 50-50 joint venture of WCT and Arabtec to build the racecourse, said that the contract was cancelled 'because of non-adherence to the agreed time schedule for construction'. WTC said that the original date of completion of the contract was Oct 7, 2009.

WCT shares last traded 29.5 per cent lower at RM1.29 (S$0.54) before the company requested for a halt in trading. Dealers said that shares are automatically suspended when they rise or fall by 30 per cent from the previous day's closing price.

WCT said that it was given 14 days notice to cancel the contract. Meydan said that it is considering other companies to complete the racecourse by 2010, when it is to be opened with the Dubai World Cup horse race. -- Reuters