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Construction and property stocks rally


“The KL Construction Index has climbed to a new high of price-to-earnings (P/E) ratio of 25.43 times on Monday – its highest since its lowest P/E ratio of 5.8 times in 2011 alongside with recent lifting of share performance for index heavyweights such as IJM and Gamuda.  “The uptick illustrates a conformance to higher macroeconomic activity in the construction sectors such as higher total conventional project awards coupled with the total loans disbursed by financial institutions,” said MIDF Research in a report yesterday.

“The KL Construction Index has climbed to a new high of price-to-earnings (P/E) ratio of 25.43 times on Monday – its highest since its lowest P/E ratio of 5.8 times in 2011 alongside with recent lifting of share performance for index heavyweights such as IJM and Gamuda. “The uptick illustrates a conformance to higher macroeconomic activity in the construction sectors such as higher total conventional project awards coupled with the total loans disbursed by financial institutions,” said MIDF Research in a report yesterday.

PETALING JAYA: Construction and property counters rallied led by George Kent (M) Bhd that hit another all-time high consecutively in two days as the sector is poised for an upcycle going forward this year.

The timing was good for George Kent which climbed to RM3.59, up 36 sen with 8.5 million shares traded yesterday.

Construction , Property , market

   

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