New Cabinet is expected to expedite construction projects (CIMB)

The newly formed Cabinet is expected to expedite the roll-out of construction projects under the stimulus packages and the 9th Malaysia Plan.

• IJM Corp CEO Datuk Krishnan Tan said he was positive the new government would push forward the implementation of the fiscal stimulus packages. There are grounds of optimism in the rising supply of deals coming on stream. In view of the improved construction sector outlook, IJM intended to focus on its home turf, instead of Middle East and India, he added.

• Fund managers have been buying up construction stocks principally Gamuda, IJM and WCT as they glimpse a light at the end of the smart tunnel.

• The interest has also extended to stocks that manufacture building materials such as Lafarge Malayan Cement and YTL Cement.

• The steel producers are believed to make profits again with Lion Industries Corp, CSC Steel Holdings, Malaysia Steel Works and FACB Industries to benefit in the recovery cycle that will come sometime in the future.

• Building materials are in a cyclical sector but as the Government's stimulus spending accelerates, the worst should be over in this industry.

• The industry's step-up to the next stage of its cycle will depend on the strength of the economic recovery. (Starbiz)