Indonesian construction shares up on hopes of more contracts
Jakarta (Antara News
) - Construction companies' shares were higher in mid morning trade as investors expect a pickup in contracts in the fourth quarter given the government's stated intention to speed up its infrastructure rollout plans in the final three months of the year, dealers said.
The government's plans are expected to be detailed at an infrastructure summit, to be held on Nov 1-3, they said.
Valbury Asia Securities analyst Reny Susanti said the government is likely to offer various infrastructure projects to the private sector,
including toll-roads, power plants and ports, at the summit.
"This has helped spark buying interest in this sector," she said.
At 11.11 am, toll-road operator Citra Marga was up 20 rupiah, or 2.22
pct, at 920, state-owned construction firm Adhi Karya gained 30, or 4.62 pct, to 680 and Total Bangun Persada was up 15, or 2.97 pct, at 520. The composite index was down 0.990 points at 1,527.917.
Interest in Adhi Karya was also driven by news that it recently signed a
memorandum of understanding with the Bin Ladin group of Saudi Arabia to
construct monorail and other transport projects in Mekkah worth around 5 bln usd, XFN-Asia reported citing the dealers. (*)