Positive outlook on building materials sector despite volatility

PETALING JAYA: UOB Kay Hian (UOBKH) Research is keeping its “overweight” call on the local building materials industry, on the back of favourable structural supply-demand to support commodity prices following China’s termination of its lockdowns.

However, the research outfit acknowledged that hard commodity prices would remain volatile due to weak sentiment from the fear of a global recession, although prices of hard commodities such as aluminium, ferroalloy and tin have gradually rebounded on the back of China’s economic reopening.