Daily Market Report (5 July 2019)

  • The Construction sector did not disappoint since our recommendation in February. The FBM Construction Index gained almost 26% since then and we expect there to be more upside despite the cautious stance from some of our peers.
  • Nonetheless, the index remains 25% below its peak prior to GE14. Our positive stance on the sector stems on the fact that the sector thrives on positive news flow and believe there to be more in the pipeline.
  • We remain buyers on Gamuda, IJM, Econpile and laggards like TRC, Gabungan AQRS, Vizione, George Kent and Crest Builder could potentially offer substantial upside.