NRW jumps on double tailwind
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NRW Holdings (NWH) got a double boost this morning with shares in the engineering contractor enjoying its best gain in more than two weeks.
Management said it had secured a $620 million rail earth works contract for the Roy Hill mine and the stock jumped 5.6% to $1.50 in early trade.
NRW will start the construction of the 330 kilometre rail line this month and the project is scheduled to be completed in January 2015. The stock is up over 30% since we highlighted its potential in August.
But it’s not only the new contract that is drawing interest in the stock today. The US Federal Reserve indicated overnight that it would be keeping its bond purchase program in place until there are stronger signs of an economic recovery in that country.
The news is sparking a run in mining-related stocks as commodity prices lifted. The mining-heavy Materials sector is the best performing sector on the market this morning.
NRW is part of the Uncapped 100.
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