Zelan May Rise; Could Get Contract From Mudajaya

 Zelan (2283.KU) may rise to test MYR0.38 after the company said it could receive a contract worth upto MYR300 million for a power plant project in the southern state of Johor. Mudajaya Group (5085.KU), part of a consortium which includes Alstom S.A. (ALO.FR) and Eversendai Corp (5205.KU), plans to subcontract a portion of the civil works to Zelan subject to the consortium being appointed as the contractor, Zelan said in a stock exchange filing. The news will likely help lift the stock which ended Friday down 1.4% while underperforming the KLCI's 0.7% gain. Although it isn't certain that Zelan will secure the project, the news could attract investors to the stock after the construction subindex rebounded strongly over the week. (jason.ng@dowjones.com)