'GE13 results to yield positively on property'

The 13th General Election results are expected to yield positive sentiment on high-beta property stocks, said RHB Research.

The
conclusion of the general election had at least provided a clear
visibility for the property sector, it said in a note today.

"The positive sentiment arising from the election outcome is likely to buoy the sector," it said.

"The high-beta sectors, which include the property sector, are likely to perform when the equity market rebounds," it added.





RHB Research said said the expectation was supported by the favourable
sector fundamentals, which included positive population growth cycle,
influx of liquidity led by low interest rate, consistent gross domestic
product growth and the catalytic developments such as MRT Line 2 and 3
in the Klang Valley.

The research house said the growing young
demographics will continue to underpin the property market in Malaysia,
particularly for the mid-end mass housing segment.

"The increase in the middle-aged population will lead to the formation of higher number households," it added.

RHB
Research also said the upcoming potential listing of Iskandar
Waterfront Holdings and Medini Iskandar are likely to create positive
spillover to other developers with sizeable exposure to Iskandar
Malaysia region.

Mergers and acquisitions and joint-ventures in the property scene would also potentially surprise the market, it added.

"Having
downgraded the sector for almost two years, we believe the timing is
right to overweight the sector again, considering the more reasonable
current valuations after the recent election sell down," said RHB
Research.

The research house favoured Sunway Bhd with a "buy"
call and target price (TP) of RM3.50, IJM Land with a "buy" call and TP
of RM3.42 and UOA Development also with a "buy" call and TP of RM2.60.--
Bernama