Cement makers hit by infrastructure slump in emerging markets

Cement producers have been sliding on the financial stock exchanges as emerging market bonds and equities tumble, according to the Financial Times. Many of the region’s building materials groups have invested heavily in the emerging markets and fears that falling foreign investment will negatively impact state spending on large projects has underpinned stock market losses.

Swiss major Holcim last week warned that slowing infrastructure spending in India – its biggest market – would dampen profit growth this year. Its shares were down 4.4 per cent to CHF67.75 (US$73.60).

France’s Lafarge fell 4.2 per cent to €47.25 after analysts warned of the impact of civil unrest in Egypt, although the company said its operations in the country, which are far from Cairo, were so far unaffected.

HeidelbergCement, which also has operations in Asia and Africa, fell four per cent to €55.80.??Overall, the FTSE Eurofirst 300 fell 0.6 per cent to 1224.58.