RHB favours Sunway, IJM Land, UOA, Iskandar stocks after BN win

Business & Markets 2013
Written by Bernama
Monday, 06 May 2013 12:36
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KUALA LUMPUR (May 6) : 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.
HB 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