Weak outlook seen for construction sector

In its report to clients on the sector, Kenanga Research said in light of the weaker prospects for the local infrastructure space coupled with the government’s less than ideal fiscal position, it was choosing to “dial down” valuations for key infrastructure contractors under its coverage namely Gamuda Bhd and IJM Corp Bhd (File picture shows Gamuda workers being trained in tunnelling)

PETALING JAYA: The construction sector has been downgraded on what analysts call “less upbeat prospects” following the annoucement of the 12th Malaysia Plan (12MP).

In its report to clients on the sector, Kenanga Research said in light of the weaker prospects for the local infrastructure space coupled with the government’s less than ideal fiscal position, it was choosing to “dial down” valuations for key infrastructure contractors under its coverage namely Gamuda Bhd and IJM Corp Bhd.