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=MARKET BUZZ: Malaysia’s Property Stocks At 7-Year Low On Weak Industry Outlook

KUALA LUMPUR (Oct 11) -- Bursa Malaysia’s Property Index down 2.2% at lowest since Oct. 2011, underperforming 1.7% drop in KLCI, after state-run National Property Information Centre says market is expected to remain soft for next few years amid "overhang" in residential space. Data released earlier Thursday by NPIC show 1H18 transactions fell 2.4% on year to 149,889; expects under 1% growth in residential sales in 2H. Among big-caps, Eco World Development Group falls 5.3% to MYR1.08, LBS Bina Group falls 4.2% to MYR0.69 while Sime Darby Property falls 3.6% to MYR1.07. “My overall view on the sector outlook is still lacklustre. Earnings will likely be flat or weak year on year,” says analyst at local investment bank. Views keen investors should view today’s drop as a selective buying opportunity; warns, however, earnings turnaround for most firms may only occur in 2020. Tips Buy Sunway with target price of over MYR2.00; company benefits from mature investment assets and also offers exposure to underappreciated trading and healthcare segments.

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