The JSE construction sector has been under pressure forever, well since the highs of 2007 as we geared up for the world cup. Than global markets crashed and recovered, but some sectors such as construction have not as yet recovered.

I was bullish on the sector in 2010 and exited in about 2012. These days I ignore it, margins are under pressure, it is a global sector these days and the competitive edge is only really price – that’s not a space you want to be in. Adding to the woes for investors is that this is a massively cyclical sector. So sure on many metrics some of the stocks may seem cheap, but what will get the share price going?

Disclaimer is that I own Calgro M3 as a very niche player in the space.

I used the stocks within the Heavy Construction index only.