MARKET TALK: Kier, Costain To Benefit After Emergency Budget

23rd Jun 2010 10:43

0943 GMT [Dow Jones] Kier (KIE.LN) and Costain (COST.LN) are likely to benefit the most from the better than feared outlook for the construction and materials sector, following the UK emergency budget, says Investec. Says the budget signaled no further cuts to the sector and included the formation of a regional growth fund to finance capital projects. Notes Costain has fallen 23% since its '10 peak while Kier has fallen 12%, both largely due to spending fears. Says both businesses have grown outsourcing businesses and other defensive business lines in addition to their public sector activities. Sees a relief rally for both. Rates the two at buy. Costain shares flat at 201.3p, Kier +0.2% at 1020p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 23, 2010 05:43 ET (09:43 GMT)