MARKETS SPECTATOR: Transfield scrapes back ground

Shares in mining services company Transfield recovered slightly today after it announced contract wins in Australia and across the Tasman.

Transfield shares rose as much as 8.5 per cent today after the mining services, engineering and construction company said it had won $157 million worth of contracts in Australia and New Zealand.

The company’s shares closed up 6 cents, or 6.8 per cent, to 94.5 cents after earlier rising as high as 96 cents after it told the ASX it had won a power distribution grid component replacement contract in Victoria, a gas plant engineering contract in New Zealand, a power contract in the Pilbara and a drilling contract in Queensland Cooper Basin.

Today’s investor response to news of Tranfield’s contract announcement goes a little way to repairing the 26 per cent decline in the company’s stock price since May 21 when Transfield cut its net profit forecast by as much as a third because the world’s biggest mining companies have this year slashed spending, cutting their arrangements with mining services companies, including Transfield.

This year Transfield’s stock is down 52 per cent.