Malaysia’s FTSE Bursa Malaysia KLCI Index (FBMKLCI) fell 8.01, or 0.6 percent, to 1,433.06 at the 12:30 p.m. local time break, snapping a five-day gain. The gauge has climbed 1.6 percent this week, set for its third weekly increase.
Property stocks: UEM Land Holdings Bhd. (ULHB MK) gained 1.6 percent to 1.87 ringgit, set for a record close. Eastern & Oriental Bhd. (EAST) added 3.6 percent to 1.14 ringgit. YNH Property Bhd. (YNHB) climbed 0.6 percent to 1.69 ringgit.
Malaysia’s property industry was raised to “overweight” from “neutral” by OSK Research Sdn. analyst Mervin Chow Yan Hoong, who wrote in a report today that the sector is in the early stages of a property “super-cycle.”
Construction stocks: WCT Bhd. (WCT) rose 2.8 percent to 2.91 ringgit, set for its highest close since May 12. Malaysian Resources Corp. (MRC MK) climbed 6.3 percent to 1.87 ringgit, the highest level since Feb. 27, 2008.
Investors should buy builders such as WCT and Malaysian Resources as earnings are at an inflection point in anticipation of a “more aggressive” rollout of multiplier projects, HwangDBS Vickers Research Sdn. said in a report today.
AmanahRaya Real Estate Investment Trust (AARET) , a property trust, rose 1.1 percent to 88.5 sen, set for its largest gain since Aug. 16. The company said it agreed to acquire three properties from Selangor State Development Corp. for 270 million ringgit ($86 million). Selangor State Development will also buy as many as 70 million units in the trust at 95 sen each, the company said in a statement.
Genting Bhd. (GENT) , Asia’s third-largest listed casino operator, slid 2.7 percent to 9.22 ringgit, set for its steepest decline since June 29. Genting Chairman and Chief Executive Officer Lim Kok Thay sold 269,000 shares in the company, a stock exchange filing showed. He sold the shares between Aug. 27 and Aug. 30, he said in the filing.
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