MURRAY & Roberts Holdings, SA’s second-biggest construction company, says its order book increased as an expanding economy spurred building activity.

Orders stood at R16,5bn as of September 30, compared with R10bn at the end of June, the company said yesterday at its annual general meeting. First-quarter trading was in line with the second half of the company’s last financial year. Sales in the six months ended June 30 advanced 23% to R6,39bn.

Construction is being boosted by the government’s R372bn plan to build roads, power plants and other infrastructure. And SA’s economy grew 4,9% in the second quarter this year, bolstering residential and commercial development.

“The strong demand for construction services and materials has continued in SA and the Middle East,” CEO Brian Bruce said at the meeting. “The group will benefit substantially should these levels of demand continue through the remainder of the year.”

Shares of Murray & Roberts rose as much as R21,10, or 6,10%, to close at a record R36,50. The stock gained 87% in the past year, to reach a market capitalisation of R11,8bn.

Rising global demand for metals was also leading to increasing work for Murray & Roberts, whose units specialised in underground mining and offshore oil and gas operations, Bruce said. The company was competing for R20bn of work in new projects, he said.

Its Union Carriage & Wagon operation controlled 49% of a venture that won a contract to supply 31 locomotives to Spoornet, the state-owned rail company. Murray & Roberts’ share of this work was worth R600m, Bruce said.