Rotary Engineering (R07.SG) +3.7% at $0.990 with volume spiking to over 6 million ($325.3 million) shares after it announced EPC contract worth estimated US$250 million to build petroleum storage facility in Middle East.

CIMB, which has Buy call, $0.51 target under review, increases orders assumption to $700 million from $600 million for FY11-FY12; expects one sizeable contract (around $300 million) on annual basis. 

“With this contract in the bag, we expect Rotary to secure its next order from the South East Asia region. Closer to home, local players indicate that activities on Jurong Island could be quiet for the next 3-6 months. However, EPC contractors are expecting an up-tick in 2H11.” Intraday peak at $1.010, highest since May, likely to cap near term.