China Cement Stocks To Outperform In 2H12

China Cement Stocks To Outperform In 2H12
Published: 15 November 2011

UBS keeps its long term positive view on China’s cement sector and expects cement stocks to outperform in 2H12; "the improving policy environment should prevent the sector from a big pullback." However, it recommends investors be patient, as a better entry point could come in next 1Q when cement demand and price should have bottomed. It says policy and fundamentals are the two key drivers for cement stocks. Recently, with the gradual and moderate easing of macro policies, it believes cement stocks could rebound, though stock prices could stay volatile as fundamentals have not yet turned around.