The equity market is expected to react positively to the unveiling of the 10th Malaysia Plan (10MP)(2011-2015).


Construction, property and utilities-related stocks are expected to reap the immediate benefits from the announcement of 52 high impact projects worth RM63 billion under the 10MP yesterday, says research houses.


The projects include seven toll highways, two coal power plants and the development of 1335 hectares (3,300 acres) of land in Sungai Buloh.


Also announced was the development of the Sungai Besi airport land in Kuala Lumpur and the KL International Financial District as well as the LNG regasification plant in Melaka.

OSK Research said construction and property would naturally feel the greatest impact from these projects, with the potential beneficiaries being Sarawakian construction players.


Agreeing with this, MIDF Research said it had identified Naim Holdings and Hock Seng Lee as shorter term benefeciaries of the budget.


Malaysian Resources Corporation Bhd (MRCB) is also expected to participate in the various rail projects.



Another research house, Kenanga Research meanwhile, said contractors with a strong balance sheet would be able to bid more competitively with deferred payment contracts, lower construction cost through buying materials using cash and lower interest rates.