Given the construction industry’s positive outlook amidst the sizeable upcoming infrastructure projects, shares of firms from this sector were among the most traded in Bursa Malaysia following the Chinese New Year lull, reported the New Straits Times.
In fact, the industry accounted for the 135.56 million stocks that changed hands on Monday (6 February).
Moreover, the Construction Index rose by 0.7 percent at the close of the market, surpassing the 0.37 percent gain of the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI).
The top performers included Eversendai Corp, Ho Hup Construction Company and Bina Puri Holdings Bhd, whose share prices respectively increased by 5.2 percent, 6.13 percent and 8.1 percent to 72 sen, 87 sen and 47 sen.
Similarly, the stock of JAKS Resources climbed 2.3 percent to RM1.31, that for TSR Capital rose 4.2 percent to 50 sen, while Ekovest Bhd recorded a 4.5 percent growth to RM2.81.
“Construction growth momentum this year continues to be sustained by ongoing large-scale infrastructure projects, such as the Pan-Borneo Highway and Sungai Buloh-Serdang-Putrajaya Line, with further boost from China-led port projects in Malacca and Port Klang,” said Dr Yeah Kim Leng, an economics professor at Sunway University Business School.
There are also other major projects in the pipeline, such as the highly anticipated Kuala Lumpur-Singapore High-Speed Rail (HSR) and the East Coast Rail Link.
“These will ensure continuing construction activity that will help offset the softer residential property construction that has shifted focus to the affordable or mass housing segment,” he noted.
Image sourced from vincent loy
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
