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Highlights
- The share price of Boral Limited (ASX:BLD) traded in the green on Wednesday (30 March 2022).
- Today, the stock closed 2.616% higher at AU$3.530 per share on ASX.
- The uplift in the company's share price can be linked to the Morrison Government's 10‑year infrastructure investment pipeline, which has been increased to an unprecedented figure of AU$120 billion.
The share price of Boral Limited (ASX:BLD) traded in the green on Wednesday (30 March 2022), though there was no new update from the company side on the ASX. The shares closed 2.616% higher at AU$3.530 per share on ASX.
Investors' have kept an eye on the stock after the Government announced increased spending on infrastructure in its Federal Budget released yesterday (29 March 2022).
Boral Limited is an ASX-listed Australian building product and construction material company. The company produces and sells various construction materials such as quarry products, concrete, cement, asphalt and recycled materials.
Boral's share price has declined 35.70% over the last one year, while the stock is down 43.06% year-to-date (YTD).
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In this Budget, the Morrison Government's 10‑year infrastructure investment pipeline has been increased to an unprecedented value of AU$120 billion.
The Government has given a boost to infrastructural spending. Now, how will this impact Boral's business can be understood more clearly when we look at the company's FY22 half-year result. In its half-year results, the company indicated a strong pipeline of significant transport projects and prioritising projects that go with its network.
Image Source: © Kemaltaner| Megapixl.com
How much will the Australian Government spend on infrastructure?
The Government has committed an additional AU$17.9 billion to priority rail and road projects across Australia. This includes AU$3.1 billion for Melbourne Intermodal Terminals and related infrastructure. Besides, the Budget also includes AU$3.7 billion for faster rail projects in New South Wales (NSW) and Queensland that will better connect cities with our growing regions.
In this Budget, there is also an investment of over AU$500.0 million for local councils to maintain and deliver priority road and community infrastructure projects across Australia.
The Budget also provides an additional AU$880.0 million for Roads of Strategic Importance, $385.4 million for the Northern Australia Roads Program and AU$150.0 million for the Inland Rail Interface Improvement Program.
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The Government is committing an additional AU$678.0 million to seal a further 1,000km of roads on the Outback Way, a 2,720km route that links Laverton in Western Australia with Winton in Queensland via Alice Springs. Nonetheless, through its AU$8.9 billion National Water Grid Fund, this Budget provides AU$7.4 billion for 13 water infrastructure projects that increase water security and build drought resilience.
It is believed that there is no less than AU$21 billion for regional infrastructure projects.
The company has not officially commented on the Federal Budget, nor has the construction materials company announced any new official update after this development, which would have impacted its share price.
With that said, the Government's increased infrastructure spending will likely impact the company's performance going ahead.
