European construction firms at record high on Germany's infrastructure fund plan

Compagnie de Saint Gobain SA

05/03/2025 10:21

Adds analyst's comments, updates share moves

** Europe's construction stocks gain after German parties agree to create 500 bln-euro ($534 bln) infrastructure fund

** Sector gauge .SXOP climbs 5.7% to record high; top gainer among other sectoral indexes on STOXX 600 .STOXX

** Germany's Hochtief HOTG.DE leads gains, jumping 17% to record high; Heidelberg Materials HEIG.DE soars 12%

** Italy's Cementir Holding CEMI.MI gains more than 5%

** Spain's ACS ACS.MC adds 8%; France's Saint Gobain SGOB.PA, Eiffage FOUG.PA advance ~7% each

** Swiss Sika SIKA.S up 7%; Geberit GEBN.S rises 5%

** "Heidelberg stands to benefit most... owing to its leading market share in the region," Morningstar says

** Adds factors such as high entry barriers mean threat of imports or new competition is low, which will support HEIG's pricing power

** Kepler Cheuvreux notes Italy's Buzzi BZU.MI, which is up more than 10%, might benefit from the German fund due to its 12% EBITDA exposure in the country

($1 = 0.9359 euros)

 (Reporting by Paolo Laudani, Philippe Leroy Beaulieu)

 ((Paolo.laudani@thomsonreuters.com))