=MARKET BUZZ: Malaysia Property Stocks At 7-Month Low; Rebound Likely
KUALA LUMPUR (Oct 20) -- Bursa Malaysia Property index down 0.5% at 1229.67, lowest since March, on bearish near term earnings prospect, mainly due to oversupply concern. UOA Development weighs on index, down 6.8% at MYR2.35. Still, top fund official expects select property stocks to rebound on value buying; there's also sign of recovery in recent pre-sales numbers. "Malaysia’s property sector is poised to rebound after a four-year softening cycle, helped by strong demand and improving bank approval rates," says Affin Hwang Asset Management’s head of equity strategy Gan Eng Peng. Recovery in Malaysia’s property market could also be helped by hopes of rebound in Singapore’s real estate. "Singapore's government announced some easing on property market measures earlier this year and there's speculation we might follow. Perhaps some initiatives may be announced in the budget next week," he adds. Large-cap stocks with both construction and property divisions preferred, to capture upcoming infrastructure contract awards.
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
- Edited by Abhijit Basu
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