China factor key to building material sector

Kenanga Research expects stable price outlook for non-ferrous metals.

PETALING JAYA: Kenanga Research has downgrade the local building materials sector to a “neutral” from an “overweight” call in the absence of strong policy responses from China to revive its economy.

The brokerage firm said the China factor could see the outlook for ferrous and non-ferrous metals unlikely to improve, despite partially cushioned by supply constraints due to the ongoing phasing out of polluting production capacity and easing input costs.