MRT2 contractors Gamuda Bhd and MMC Corp Bhd were among the top losers at the KLSE this morning following Putrajaya's decision to cancel the underground portion of the project.

At 10.30am, Gamuda was trading at RM2.54, down 20.87 percent, while MMC Corp was trading at RM1.19, down 11.85 percent.

Finance Minister Lim Guan Eng said the underground portion of the project was cancelled because Putrajaya and the MMC-Gamuda joint venture could not agree on plans to rationalise the underground portion of the project.

In view of this, a fresh international open tender will be called.

"This decision was made after considering that the government can achieve further significant savings by re-tendering the underground work package, compared with the offer made by the existing contractor," he said.

The overground portion of MRT2 will proceed as planned, although MMC-Gamuda has agreed to trims cost by 23 percent, or RM5.22 billion, from the original RM22.64 billion price tag.

The finance minister promised that none of the aboveground stations have been cancelled.

He said that the overall cost savings, which should include a cheaper underground portion, will reduce government borrowings and result in cheaper fares.

The MRT2 project was approved during the Najib Abdul Razak administration in 2014.

At the time, the total estimated cost was RM28 billion, but the figure eventually ballooned to RM56.93 billion.