PETALING JAYA: Although the termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project is seen as a major setback for the construction sector, research analysts are maintaining their mixed ratings on the sector.
Kenanga Research is maintaining its “overweight” call on the sector, and pointed out that without the HSR, the government’s fiscal purse would be less tight, thus freeing higher allocations to other high impact projects such as the Mass Rapid Transit 3 (MRT 3).
“The Covid-19 recovery theme is set to grow in prominence in 2021 which would set the narrative for amplified share price reaction upon news flows amid a liquidity-filled market, ” it said.
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