♦ Cement sub-sector due for a re-rating. Share prices of cement producers under RHBRI’s coverage (Lafarge and YTL Cement) have underperformed the market by 3.7-4.6% pts YTD. We believe the cement sub-sector is due for a re-rating, prompted by:
1. New expectations leading up to the announcement of 10MP, which will in turn boost investors’ risk appetite towards construction-related stocks; and
2. The anticipation of a meaningful pick-up in domestic cement consumption from 2Q 2010.
Building Materials : Investors’ Risk Appetite For Cement Stocks To Improve - 29/03/2010
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