Margin normalisation likely for building materials sector


Kenanga Research expects metal prices to remain firm amid weak demand visibility.

PETALING JAYA: Companies in the building materials sector are expected to benefit from stable average selling prices and more manageable costs, leading to margin normalisation, despite delivering mixed earnings results recently.

Kenanga Research said non-ferrous metal counters met its expectations in the second quarter of 2024 (2Q24) reporting season, while ferrous metal companies disappointed due to higher input costs and weaker demand.

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