Affin Hwang Capital upgrades Construction sector to Overweight

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KUALA LUMPUR (Aug 7): Affin Hwang Capital Research has upgraded the construction sector to “Overweight” (from Neutral) and said Malaysia Rail Link Sdn Bhd (MRL) will call for tenders for the RM44 billion East Coast Rail Link (ECRL) project civil works in 4Q19.

In a note today, the research house said more infrastructure projects are likely to be revived.

“We upgrade the Construction Sector to Overweight from Neutral as we believe rising external risks will shift the focus to domestic-oriented stocks.

“We expect infrastructure spending to accelerate in 2020 to support GDP growth.

“We upgrade Gamuda Bhd to Buy from Hold as a large-cap sector proxy.

Gabungan AQRS Bhd, HSS Engineers Bhd and Sunway Construction Group Bhd are our top small and mid-cap sector Buys,” it said.