Stable outlook for non-ferrous metal players

Kenanga Research is “overweight” on the building materials sector.

PETALING JAYA: A stable price outlook is seen for the non-ferrous metal players due to supply constraints, but steel players may not be able to boost their margins following the doldrums in steel prices, says Kenanga Research.

The research house, which is “overweight” on the building materials sector said its top picks were aluminium smelter Press Metal Aluminium Holdings Bhd and ferroalloy smelter OMH Holdings Ltd in line with their significant cost advantages over their international peers.