PETALING JAYA: “The best is yet to come,” notes Kenanga Research on the construction sector, owing to the anticipated roll-out of mega public infrastructure projects and the sector’s promising margin recovery.
The research house said it believes the government now has more fiscal space to roll out such projects, having started fuel subsidy rationalisation with the removal of the diesel subsidy from June 10.
Despite the year-to-date outperformance, largely fuelled by the RM10bil Mutiara Line of the Penang Light Rail Transit (LRT) project and various data centre projects, Kenanga Research said the outlook remains positive with the forthcoming roll-out of the Mass Rapid Transit Line 3 (MRT3) project in the Klang Valley, which is estimated to cost about RM45bil.
“We maintain our overweight rating on the construction sector on the back of the roll-out of mega public infrastructure projects led by MRT3,” the research house said in a report on the sector.
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