Construction counters on a roll

UOB Kay Hian noted that post the 14th General Election (GE14) that saw Pakatan Harapan (PH) taking over the Federal Government, most construction and highway-concession related stocks have tumbled significantly, besieged by concerns of potential cancellation/deferment of some mega projects, contract renegotiation of ongoing mega projects, and toll road concessionaires being compromised.

PETALING JAYA: Construction stocks, led by IJM Corp Bhd and Gamuda Bhd, rallied yesterday on high hopes that several large infrastructure development projects, currently put on hold, would be revived soon.

Rakuten Trade Research said sentiment on the sector has turned positive, driven by news flows concerning the East Coast Rail Link (ECRL) and upcoming projects in Penang.