Monday, July 5, 2010

RHB Research upgrades construction sector to Overweight

KUALA LUMPUR: RHB Research is upgrading the CONSTRUCTION [] sector to Overweight from Neutral as it foresees construction stocks to generally outperform the market in 2H2010.

It said on Monday, July 5 the positive sentiment is buoyed by news flow, particularly, from: (1) the RM36bn KL mass rapid transit (MRT) project; (2) The RM7bn Ampang and Kelana Jaya light rail transit (LRT) line extension project; and (3) Federal land deals.

Assuming the KL MRT project is to eventually materialise and the contract goes to the 50:50 Gamuda-MMC Corp JV, between now and the actual award of the contract, a series of events can buoy, if not sustain Gamuda's share price.


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