BUY: AVENGShare price: R6.22JSE code: AEGAveng has emerged as a shining star in SA’s construction sector, with most analysts viewing the stock as a "buy".In September, the Public Investment Corp (PIC), Africa’s largest fund manager, increased its holding in the company to 5.4%.The PIC’s share increase followed the release of annual results that showed the company had improved its headline loss by 48% to 75.2c/share in the year ended June.Institutional investor Kagiso Asset Management also nudged up its stake to more than 5% in August, adding further momentum to the rally that has boosted Aveng’s share price by almost twofold since January.What is behind the renewed confidence?Aveng has had to adapt to leaner economic times made worse by a dearth of major infrastructure spend from government in the past five years.It is in the process of exiting the steel market, selling 70% of Steeledale to black-empowered, women-owned Kutana Group. An announcement of the sale of Trident Steel is ex...
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