capitals are considered shouting,so as to get a civil answer in future,u know what to do.... almost the whole market has tanked in the last couple of days....construction companies are also floundering at present as the demand around the world has not taken off yet....hope this helps
A lot of the construction companies currently fall in the "Dogs of the dow" category seeing they've got some of the highest Return on capital and earnings yields, but are not sexy at the moment. Might be good for a one year play.
Market always looks into the future to determine today's price. What's in the pipelines for MUR after 2010 ? Construction is highly cyclical. Gov infrastructure spend kept MUR in very good shape, but that will end in next year. With a prospect of slow world recovery image what the impact will be on MUR's order book.
Also sitting on some MUR. SA Government spending of R787-billion anticipated on public infrastructure (Feb 09), figure boosted to R850-billion, (Oct 09) over the next three years (20 Nov 09 - govt committed to further increasing infrastructure spend), which is probably why construction sector shares (Basread/MUR/Aveng) still rated a buy/outperform; MUR also sitting on the support line of about 5350, and holding, can't see much more downside - this share oversold, given all the SA and parastatal infrastructure requirements going forward to 2020.
Well, a simple observation is this - if all stocks have a beta to the market, then they should generally be rising in a rising market. Now if they are flatlining, then what do you expect them to do when the market turns (and it will turn at some point). One thing I can guarantee, is that htere were a lot of stoplosses sitting right below that 5320 level, so when it broke, a lot of downside movement took place. Volumes are low, so that tells me that stops kicking in here was most likely the case. If it is a genuine downward break, then it will most likely close pretty much near its low, and volumes will pick up. If it is just stoploss action, then it will pull back into its consolidation zone.
ooh, we have a trade setup lining up here! a 3% drop off a sens that I think was sort of predicted by industry, given the selloff. i suspect we will now start seeing some renewed buying action soon. I mean its a quality company with a strong order book and well positioned to capitalize off infrastructure projects in Africa, and there are a lot of infrastructure projects in the pipeline