SP Setia slips below RM4

KUALA LUMPUR: Shares of SP SETIA BHD []
fell below RM4 in late afternoon on Monday, July 25 as sentiment was
dampened by the weak broader market and key regional bourses but volume
was not very heavy.
At 2.57pm , it was down 14 sen to RM3.93 with 244,500 shares done.
The FBM KLCI lost 3.93 points to 1,561.13. Turnover was 506.14
million shares valued at RM663.32 million. Losers swarmed gainers 460 to
160 while 254 stocks were unchanged.
Kumpulan Wang Persaraan (Diperbadankan) has emerged as a substantial shareholder in SP Setia with a 5.01%.
A filing with Bursa Malaysia showed it acquired one million shares in
the open market on July 19, increasing its total shareholding in the
property developer to 89.04 million shares
Last Thursday, July 21, Amresearch reaffirmed its Overweight stance,
and BUY ratings on S P Setia, IJM Land and Ivory PROPERTIES [].
“From the fundamental standpoint, we are unmoved by the recent
sentiment-driven sell-down in property equities, triggered by market
talk of potential policy tightening on residential demand. In any case,
we believe that property equities have surely priced-in the policy risks
by now,” it said.
AmResearch said the earnings delivery was intact as developers – SP
Setia and IJM Land – were sitting on record unbilled sales of RM3.5
billion and RM1 billion to RM1.5 billion, respectively.
“We believe that properties equities are cheap from both the earnings
and assets perspectives. One negative though is the market risk in the
near term: we expect the KLCI to move sideways with consensus earnings
expectations bottoming out in 3Q11.
“This should pave the way for the next leg up in early 4Q11 when we
expect the KLCI to end the year at around 1,650 – with property equities
leading the upturn as we approach the tender for the Sungai Buloh land
in 1H2012,” it said.