In most cases, strong revenue and earnings announcements in quarterly reports push share prices to higher levels.
This upwards pressure related to costs resulted from the combination of increased rates for freight, higher prices of materials and increased production expenditures.
First, the global economic recovery and the post-COVID reopening of various sectors will result in an increased demand for oil, gas and other raw materials.
Sales of construction equipment in the country dropped during the fourth quarter, driven by lower orders from local construction companies.
Worries about Chinese construction sectors surfaced at the end of last year when the major Chinese real estate developers, Evergrande and Kaisa, started showing signs of financial distress.
It was triggered by the government’s crackdown on excess borrowing by companies in the real estate sector, which led to falling house sales as well as a decrease in confidence among buyers and investors.
© 2022 ConstructConnect Canada, Inc.