Tuesday, April 5, 2011

OSK Research Overweight on consruction

KUALA LUMPUR: OSK Research is maintaining its Overweight rating on the CONSTRUCTION [] sector, with Mudajaya, Gamuda and KimLun as its top picks.

It said on Tuesday, April 5 that in the January-March quarter of 2011, some RM2.7bn worth of domestic contracts was awarded, up 44% y-o-y.

From a q-o-q perspective, the value of domestic awards was down 42% as 1Q tends to be the weakest quarter in the year.

'The award of foreign jobs was an insignificant RM205m, which we expect to remain weak due to the Middle East unrest and contractors refocusing on the domestic market.

'The news flow remains strong, with major projects such as the MRT and LRT gaining further momentum. We maintain our OVERWEIGHT rating on the sector, with Mudajaya, Gamuda and KimLun as our top picks,' it said.

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