NDB Wealth buys more into Access Engineering; foreign investor Tundra exits

Friday, 28 August 2020 00:38 - - {{hitsCtrl.values.hits}}

NDB Wealth has stepped up buying into Access Engineering PLC on behalf of its clients on value, given the optimistic outlook for the construction and infrastructure sector under the new Government.

On Wednesday SEB AB-Tundra Sustainable Frontier Fund exited Access Engineering selling 18.3 million shares (1.8% stake) and the buyer for Rs. 394 million was NDB Wealth. AEL closed on Wednesday at Rs. 22.10, up by 1.8%. Tundra was the 13th largest shareholder. Last week NDB Wealth bought the stake of AEL Founder Director Ranjan Gomez as well. Gomez sold his remaining 24.6 million shares mostly at Rs. 21.50 each.

Analysts said that with the Cabinet this week approving accelerated development of highways and flyovers as well as incoming infrastructure projects on water distribution – a strong point of AEL, prospects look positive for companies in the sector. The anticipated approval of Vote on Account today in Parliament will ensure cashflow to construction activities and contracts.

“The medium to long-term outlook for the construction and infrastructure sector looks very promising and augurs well to kick start a faster recovery in the economy impacted by slowdown last year and COVID-19 pandemic this year,” analyst opined.