Building-materials companies rose after President Donald Trump reiterated his plan to build a wall along the Mexican border, potentially fueling increased demand for cement, concrete and crushed stone.
Vulcan Materials Co., the biggest U.S. sand and gravel supplier by market value, advanced 2 percent to $134.98 at 9:36 a.m. in New York. Cement makers Martin Marietta Materials Inc. and Eagle Materials Inc. also rose, extending gains that began after Trump’s election. Germany’s HeidelbergCement AG, which has said it would benefit from a border wall, surged the most in two months.
Trump tweeted Tuesday “Among many other things, we will build the wall!” ahead of his scheduled visit to the Department of Homeland Security, the federal agency that has primary jurisdiction over securing the border. A wall between the U.S. and Mexico was one of the hallmarks of his presidential run along with improving infrastructure. On the campaign trail, Trump proposed to ramp up spending on construction.
”What we heard yesterday and today is that he is going to deliver,” Commerzbank AG analyst Norbert Kretlow said by phone. ”The possibility for infrastructure investments is now a lot higher.”
HeidelbergCement Chief Executive Officer Bernd Scheifele has said the company would be well positioned in Texas and Arizona to supply cement for a border wall. The shares rose as much as 3.8 percent to 91.20 euros in Frankfurt, the biggest intraday gain since Nov. 9.
Swiss rival LafargeHolcim Ltd. climbed 3.1 percent to 54.75 Swiss francs.
”Whether it’s money flowing into infrastructure or the wall - they need cement, and they need the building materials that these guys are providing,” said Phil Rosenberg, an analyst with Bernstein. “Any incremental demand for building materials would be very positive for these.”
This article was provided by Bloomberg News.