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Saturday, January 11, 2014

Maybank Research: Investors should increase exposure to construction stocks

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/mcon/Article/

KUALA LUMPUR: Investors should increase the exposure to construction stocks, Maybank IB Research said in a report, which is "overweight" on the sector.

According to Maybank, the contract awards to the sector up to the nine months last year, came in at RM67 billion.

"Job awards for the nine months were still sustained at RM67 billion, mainly driven by private sector investments and non-residential projects," Maybank said in the report.

It added that the RM67 billion worth of contracts that have already come in, should help support the sectorial earnings this year.

Moving forward, it said the sector's sentiment would be lifted by major projects that are inching closer to crystalisation, including the KVMRT 2, West Coast Expressway, Kuantan Port expansion and Gemas-Johor double-tracking rail project.

"News flow should stay positive on major infrastructure project awards and corporate activities involving water and highway assets," it said in a note yesterday.

The research unit of the country's biggest bank also said that IJM Corp is its top pick within the industry.

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