KUALA LUMPUR (Dec 23): RHB Research Institute Sdn Bhd has downgraded its recommendation for the CONSTRUCTION [] sector to Neutral from Overweight.
In a note Friday, the research house said investors’ confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.
Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.
There is generally a lack of credible new large-scale projects in the pipeline, it said.
“Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.
“No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,” said RHB Research.
In a note Friday, the research house said investors’ confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.
Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.
There is generally a lack of credible new large-scale projects in the pipeline, it said.
“Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.
“No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,” said RHB Research.
