Construction Shares Up In Early Trade, Boosted By Major Projects Under 13MP

KUALA LUMPUR, Aug 1 (Bernama) -- Construction-related stocks on Bursa Malaysia increased in early trade today, boosted by projects planned by the government under the 13th Malaysia Plan (13MP).

Prime Minister Datuk Seri Anwar Ibrahim tabled the 13MP during the Dewan Rakyat sitting yesterday.

At 10.39 am, Gamuda increased 14 sen to RM5.32 with 4.29 million shares changing hands, IJM Corporation gained six sen to RM2.92 with 1.49 million shares traded, and Sunway Construction improved five sen to RM5.29 with 1.07 million shares being exchanged.

RHB Investment Bank Bhd (RHB IB), which maintains its “overweight” call on the construction sector, said the development expenditure (DE) of RM430 billion allocated under the 13MP should continue to facilitate infrastructure growth in the country.

In a note today, it said the DE for the 2026-2030 period is earmarked for the economic sector, including infrastructure, info-structure, public transport, flood mitigation, affordable housing, and capacity-building projects, among others.

The projects highlighted include the Sarawak-Sabah Link Road, Pan Borneo Highway, and the Central Spine Road from Bentong (Pahang) to Kuala Krai (Kelantan).

“Key downside risks to our sector call are unexpected slowdowns in job rollouts, labour shortages, and scale-downs of data centre investments into Malaysia,” RHB IB said.

-- BERNAMA