ASX-listed building materials firms rise, Jefferies sees upbeat outlook

SGH

02/07/2025 05:03

** Shares of ASX-listed building materials firms Fletcher Building FBU.AX, SGH SGH.AX, Metcash MTS.AX and BlueScope Steel BSL.AX  rise between 1% and 2.9%

** Australian Bureau of Statistics reported May seasonally adjusted total Australian building approvals rising 6.5% YoY

** Jefferies says private sector houses have shown continued months of improvement, with private sector dwellings excluding houses again showing positive growth

** May was strong month for alterations & additions spend - Brokerage

** Jefferies is confident of the residential market gaining momentum and expects increased activity over the next 12-24 months

** Brokerage's key preferences in early-cycle are FBU, SGH and MTS and BSL, and furniture retailer Nick Scali NCK.AX for late-cycle

** YTD, FBU up 9.6%, SGH has gained 15.1%, MTS has risen 27.9%, BSL up 25.7%, and NCK climbed 20.9%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))