SINGAPORE: Shares of Singapore's Keppel Corp , the world's largest rig builder, jumped as much as 4.9 percent on Friday after the company announced a $245 million contract win and oil price rose.
At 0208 GMT, Keppel shares were up 4.6 percent at S$7.82 on a volume of 4.6 million shares. The broader Straits Times Index was 1.3 percent higher.
Keppel stock, which had been beaten down recently on worries about a slowdown in orders for the sector due to the weakening global economy, is looking cheap, traders said.
Keppel said on Friday that offshore drilling service provider Ensco plc has exercised one of its two options to build a jackup rig for $245 million.
OCBC Investment Research said in a report that Keppel has secured S$8.4 billion ($6.4 billion) worth of new orders year-to-date, almost topping its full year estimate of S$8.5 billion.
OCBC added that despite uncertainties in the global economy, industry fundamentals remain supportive of continued capital expenditure by oil companies. It maintained its buy rating and S$12.12 target price on Keppel stock.
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