Cement stocks in the spotlight

Cement stocks in the spotlight
21 May 2008

Malaysian cement companies attracted attention yesterday following speculation that the industry will be the next to be liberalised after the steel industry. Analysts are positive that a cement price hike would happen but the question that remains was a matter of timing.

“A price hike for cement is imminent. The automatic pricing mechanism (APM) is still something the cement players expect but they do not know when that will happen. We are still waiting for the government’s decision but there has been no indication on when the announcement will come,” said an industry player.

Lafarge Malayan Cement Bhd, Gopeng Bhd, Tasek Corp Bhd and YTL Cement Bhd were up. Tasek even hit a 52-week high of RM4.76 while the trading volume for Gopeng jumped six times compared to last Friday.

“Everyone is expecting the Ninth Malaysia Plan to help boost the demand for cement but as yet, nothing is seen to be coming from the 9MP,” pointed out the analyst.

Published under Cement News