By Chan Tien Hin
Sept. 3 (Bloomberg) -- Malaysia’s FTSE Bursa Malaysia KLCI Index fell 5.40, or 0.4 percent, to close at 1,435.67, snapping a five-day gain. The gauge climbed 1.7 percent this week, its third weekly increase.
Property stocks: UEM Land Holdings Bhd. (ULHB MK) gained 3.8 percent to 1.91 ringgit, a record close. Eastern & Oriental Bhd. (EAST MK) added 4.6 percent to 1.15 ringgit. YNH Property Bhd. (YNHB MK) 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 MK) rose 1.8 percent to 2.88 ringgit, 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. Gamuda Bhd. (GAM MK) advanced 0.8 percent to 3.61 ringgit.
Investors should buy builders such as WCT, Malaysian Resources and Gamuda 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 MK), a property trust, rose 1.1 percent to 88.5 sen, the most 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 MK), Asia’s third-largest listed casino operator, slid 2.7 percent to 9.22 ringgit, 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.