A report by the National Post on Canadian Infrastructure companies. Follow this link, or see below..

The infrastructure sector -- companies involved in the engineering and construction of roads, bridges, sewers, and the equipment used in their construction -- is a sub-sector of the industrial sector. It consists of six companies that are part of the TSX composite index: Aecon, Finning International, Russel Metals, SNC-Lavalin, Stantec and Toromont Industries.

All have Canadian operations and most have international operations.

Canada currently is enjoying an infrastructure boom. Current and proposed projects include the Winter Olympics, oilsands plants, oil pipelines, the Toronto subway extension, the Mackenzie Valley gas pipeline, the Alaskan gas pipeline and various energy projects across the country.

Canadian infrastructure companies are well positioned to benefit from these projects. Earnings gains are expected to be significant in the first quarter of 2008, all of 2008 and beyond. Following is a summary:

Technical Outlook

Most of Canada's infrastructure stocks have improving technical profiles.

Aecon Group Inc. (ARE/ TSX) $17.65 recently established an intermediate uptrend. The stock recently bounced from its 50-and 200-day moving average. Support is indicated at $16. Resistance exists at its high of $23.30.

Short-term momentum indicators are recovering from oversold levels. Strength relative to the TSX composite index has been positive since the beginning of February.

Finning International Inc. (FTT/TSX) $28.99, potentially is building a reverse head-and-shoulders pattern. The pattern is completed by a breakout above resistance at $30.71. The stock recently bounced above its 50-day moving average at $27.87 and appears poised to move above its 200-day moving average at $29.19.

Short-term momentum indicators are recovering from an oversold level. Strength relative to the TSX composite index has been positive since mid-January.

Russel Metals Inc. (RUS/ TSX) $26, also potentially is building a reverse head-and-shoulders pattern. The pattern is completed on a breakout above $27.47. The stock recently bounced from its 50-day moving average. The stock is poised to move above its 200-day moving average at $27.43. Short-term momentum indicators are recovering from an oversold level. Strength relative to the TSX composite index has been positive since mid-January.

SNC-Lavalin Group Inc. (SNC/TSX) $46.30, recently established an intermediate uptrend. The stock bounced from its 50-and 200-day moving average. Short-term momentum indicators are recovering from a short term oversold level. Strength relative to the TSX composite index has been positive since mid-January. Resistance exists at its all-time high at $51.04.

Unlike other Canadian infrastructure stocks, Stantec Inc. (STN/TSX) $29.19, has a negative technical profile. The intermediate trend is down and the stock trades significantly below its 50-and 200-day moving average. Strength relative to the TSX composite index has been negative since December. Short-term momentum indicators are neutral or negative. An intermediate low has yet to be confirmed.

Toromont Industries Ltd. (TIH/TSX) $29.92, has the best technical profile in the sector. The stock recently moved above its 50-and 200-day moving average to reach a record high. Strength relative to the TSX composite index has been positive since the end of October. Short-term momentum indicators recently reached overbought levels, but subsequently have returned to a neutral level.

Don Vialoux, chartered market technician, is the author of a free daily report on equity markets, sectors, commodities, equities and exchange-traded funds. Reports are available at www.timingthemarket.ca. Mr. Vialoux does not own Canadian infrastructure stocks mentioned in this report.