Property Weekly Review: 12th – 18th January 2009

January 20, 2009 at 12:45 am 2 comments

• Property sector ended slightly lower
The property sector ended slightly lower last week after posting significant gains in recent weeks. With the exception of SP Setia which ended the week unchanged, all stocks under coverage were slightly lower. On notable shareholding filings, there were still plenty of activities on SP Setia. Permodalan Nasional Bhd (including Skim Amanah Saham Bumiputra) acquired another 5.50m shares while Employees Provident Fund (EPF) disposed of 1.41m shares. On the other hand, EPF added 0.36m and 0.22m shares in Sunrise and YNH Property respectively. Controlling shareholders of YNH Property, Dato’ Dr. Yu Kuan Chon, and Glomac, Datuk Richard Fong, continued to show confidence in their companies by buying another 0.07m and 0.02m shares respectively.
• Quiet week
Nothing much happened in the property sector last week as December and January tend to see lower level of activities due to the many festive holidays. During the week, MBM Resources entered into a joint venture which marked its foray into property development while Berjaya Corporation revived their “Berjaya Central Park” project by teaming up with Ritz-Carlton to launch luxury serviced apartments. Metro Kajang is another developer which was reported last week to be launching 3 new projects in 2009 with a combined gross development value of RM1.6bn. While developers have largely expressed their confidence in the property market, there was still little action on the ground and we expect this to remain so in the first quarter as buyers remain largely on the sidelines.
• Maintain NEUTRAL
The recent rise in property stock share prices seem to have fizzled out, which is not surprising given the lack of near term catalysts. Property companies are still expected to turn in decent earnings growth in 2009, and to certain extent 2010, due to large unbilled sales brought forward from last 2 years. Having said that, we will be monitoring the launches and sales activities very closely over the next few months. The sales activities in the current year will determine whether property companies will see sustained earnings by 2011.
Our neutral call on the sector is maintained and we favour stocks such as Sunway City in current times given their more stable property investment earnings as opposed to pure property developers.

Share price performance

The property sector ended slightly lower last week after posting significant gains in recent weeks. With the exception of SP Setia which ended the week unchanged, all stocks under coverage were slightly lower.
On notable shareholding filings, there were still plenty of activities on SP Setia. Permodalan Nasional Bhd (including Skim Amanah Saham Bumiputra) acquired another 5.50m shares while Employees Provident Fund (EPF) disposed of 1.41m shares. On the other hand, EPF added 0.36m and 0.22m shares in Sunrise and YNH Property respectively. Controlling shareholders of YNH Property, Dato’ Dr. Yu Kuan Chon and Glomac, Datuk Richard Fong continued to show confidence in their companies by buying another 0.07m and 0.02m shares respectively.
On share buy back, YNH Property bought back another 0.16m shares from the market and currently has 22.81m shares held in treasury.

Notable property news
– MBM Resources Bhd has kicked off its foray into property development by entering a joint venture with its 86%-owned subsidiary Federal Auto Holdings Bhd (FAHB) to develop the latter’s property in Kuala Lumpur. The joint venture, through another 70%-owned subsidiary Inai Benua Sdn Bhd, will develop the property into a 26-storey highrise commercial office block with showrooms.
– Berjaya Corporation Bhd (BCorp) has teamed up with The Ritz-Carlton Hotel Company to develop luxury serviced apartments with an estimated gross development value (GDV) of RM2bn. The site of the development is formerly BCorp’s “Berjaya Central Park”. BCorp group chairman and chief executive officer Tan Sri Vincent Tan said the group expected to sell at least half the 300 units on offer and was prepared to offer the remaining portion for rental or for sale at a better time.
– Metro Kajang Holdings Bhd plans to launch at least three new projects with a GDV of RM1.6bn this year. Group managing director Datuk Eddy Chen Lok Loi said the company will focus on the medium-to-high-end properties that are resilient even in recession. The company is the biggest property developer in Kajang and Semenyih and is keen to strengthen its position.

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2 Comments Add your own

  • 1. » Property Weekly Review: 12th – 18th January 2009  |  January 20, 2009 at 12:52 am

    […] Kirberts finance advice and news wrote an interesting post today onHere’s a quick excerpt • Property sector ended slightly lower The property sector ended slightly lower last week after posting significant gains in recent weeks. With the exception of SP Setia which ended the week unchanged, all stocks under coverage were slightly lower. On notable shareholding filings, there were still plenty of activities on SP Setia. Permodalan Nasional Bhd (including Skim Amanah Saham Bumiputra) acquired another 5.50m shares while Employees Provident Fund (EPF) disposed of 1.41m shares. On the other hand, EPF added 0.36m and 0.22m shares in Sunrise and YNH Property respectively. Controlling shareholders of YNH Property, Dato’ Dr. Yu Kuan Chon, and Glomac, Datuk Richard Fong, continued to show confidence in their companies by buying another 0.07m and 0.02m shares respectively. • Quiet week Nothing much happened in the property sector last week as December and January tend to see lower level of activities due to the many festive holidays. During the week, MBM […] […]

  • 2. 37  |  January 20, 2009 at 1:51 am

    Helpful Finance Information Blog…

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