Gamuda Falling Down, What's the Reason?

<p>&nbsp;Gamuda Berhad was under widespread selling pressure on Monday following negative reports on the Sydney Metro West project.</p><p><br /></p><p>The stock plunged as much as 7.6% in the first half of today's trading session, before paring some losses at around RM4.18, with a market capitalization of RM11.31 billion.</p><p><br /></p><p>Gamuda became the second largest losing stock on Bursa Malaysia today after Hextar Technologies Solutions Bhd.</p><p><br /></p><p>New South Wales (NSW) Premier Chris Minns last week did not rule out the possibility of canceling or delaying the project due to rising costs.</p><p><br /></p><p><br /></p><p>He said the Metro West project was originally estimated at AU$16 billion, the latest estimate is more than AU$25 billion.</p><p><br /></p><p>Any cancellation or delay in this project could impact the company's earnings prospects.</p><p><br /></p><p>The engineering, property and infrastructure company secured AU$2.16 billion or RM6.5 billion from the 9 kilometer tunnel work between Westmead and Sydney Olympic Park through a partnership with Laing O'Rourke.</p>