Cement makers up on Exane upgrade

Cement makers up on Exane upgrade
Published: 13 April 2011

Shares in Holcim and HeidelbergCement surged more than four per cent, outperforming a 1.8 per cent higher STOXX Europe 600 Construction & Materials .SXOP index, after a sector upgrade from broker Exane BNP Paribas.

Lafarge is also up two per cent as Exane analysts say the outlook for the whole cement sector is brightening.

"Cement prices are increasing sequentially in several key markets," the broker says in a note. "Strong production data across developed markets in the first quarter of 2011 implies the volume backdrop has also become supportive."

Exane analysts say valuations for cement makers’ shares are undemanding and upgrade their sector rating to outperform.

Source: Reuters