Analysts: It's just a matter of time until builders' stocks rebound

In most of the cases, construction firms saw their turnoverplunge in the first half of the year, but analysts count on a rallystarting next year.
Construction companies and building materials producers listed onthe Bucharest Stock Exchange in the second quarter witnessedfurther turnover declines, but analysts believe investors shouldkeep an eye on these companies as starting next year, amid resumedlending, their stocks are likely to be among the first to postincreases.
"Such a field is interesting given the housing shortage. The valueof mortgage lending in GDP stands below 5%, a very low level.Should the economy become solvent, constructions and buildingmaterials firms will be among the first to benefit from thawed-uplending as there is demand even now. Under the circumstances,investors should be watching them to catch the moment the economyrevives, probably in the second half of 2011. It is just a matterof time," says Mihai Căruntu, head of BCR's capital market researchdepartment.
According to him, listed construction companies are generallyvalued at around half their book value, pointing to a significantpotential should their profitability pick up.