PETALING JAYA: There is potential in the building material sector despite 60% of the counters under Kenanga Research’s coverage underperformed in the fourth quarter of 2022 (4Q22).
It also maintained an “overweight” call on the sector based on expectations of a rebound in demand for aluminium from buyers in China following the easing of zero-Covid restrictions and a pick-up in its property market, which is expected to support commodity prices at current levels.
“Since China’s reopening in early January, commodity prices have rebounded strongly after a lacklustre second half of 2022 (2H22), driven by expectations of a demand recovery in its property market.
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