NOT WITH A 10-FOOT POLE
The construction sector remains a sector best avoided and this was once again illustrated by two recent announcements. Firstly Murray & Roberts announced a R4.8bn contract that adds some 12% to the order book. Nice, but considering we have no idea of margins or anything else, it is hardly worth the excitement we saw when the deal was announced. More than anything, it shows how desperate shareholders are for any good news. We then saw a trading update from Aveng indicating HEPS will be at least 50% lower. This sent the stock plunging, although it had run on the Murray & Roberts announcement. This sector remains extremely tough and I am leaving it well alone.