KUALA LUMPUR: AmResearch said the CONSTRUCTION [] and building material sectors appear to be the prime beneficiaries of the government's push to accelerate infrastructure spending and urban renewal under Budget 2010/2011.

"We are advocating a switch from Gamuda to IJM, whose value propositions are more compelling. The next leg of play may gravitate towards steel and cement companies. Ann Joo is our top pick within the more favoured steel sector," it said on Monday, Oct 18.

AmResearch said the MRT project alone may require at least 10x more steel bar than the SMART tunnel. Also with Sarawak state elections looking imminent, Naim Holdings offers the best leverage to the Sarawak theme.