Chiyoda stock jumps after Reuters' report on its Saudi bids

Shares in Japan’s Chiyoda Corp bounced from the day’s low in heavy volume on Aug 19 immediately after Reuters reported that the gas and engineering firm teamed up with Samsung Engineering to bid for $1.8 billion in two export refinery plants planned by Aramco, ConocoPhilips and Total. Whether the company can win new contracts in areas other than LNG projects has been closely watched by the market after Chiyoda saw its profit squeezed last year due to heavy concentration of LNG contracts in Qatar. President Takashi Kubota told Reuters in an interview that the company plans to announce one or two alliances with peer engineering companies in November as part of its efforts to diversify income sources and markets, and plans to boost workforce in Singapore and Qatar offices. Chiyoda shares were trading at 890 yen, down 1.7 percent, before the interview hit screens. After the interview, volume spiked and the stock recovered as high as 903 yen before ending the day at 900 yen, down 0.6 pct on the day. The stock gained 3 percent in the following two days.