Shares in North America’s timber-related companies have been bolstered by US president-elect Barack Obama’s announcement of the biggest public works programme since the 1950s.
Senator Obama announced the plans over the weekend, driving interest in the companies and sectors supplying building materials, including timber, to the construction industry.
On the New York Stock Exchange, Plum Creek Timber’s shares closed at US$36.75 on Monday, up 7.74% on Friday; Weyerhaeuser shares closed at US$35.98, up 1.67%; and Rayonier’s shares jumped 4.53% to close at US$30.68.
On the Toronto Stock Exchange, West Fraser Timber shares were up 6.67% to C$32 and TimberWest Forest Corp shares grew 13.49% to C$3.45.
In addition to recouping some of the confidence in the building trades, it is expected that the stimulus plans will also create 2.5 million jobs.
