Malaysia Property Sector's Earnings Visibility Could Stay Intact

Dow Jones
09/07

0710 GMT - Property earnings visibility in Malaysia could remain reasonably intact, driven by healthy project pipelines and unbilled sales, MBSB Research analyst Jessica Low Jze Tieng says in a note. Total property loan applications rose 11.2% on month to 62.9 billion ringgit in July, after school and public holidays disrupted activity in May and June, she notes. However, persistent inflationary pressures and higher household expenses are expected to keep buyers cautious, tempering property demand and sales momentum in the near term, she says. MBSB maintains a neutral rating on Malaysia's property sector, given no strong immediate catalysts that could significantly improve sector performance, pegging Matrix Concepts, IOI Properties and Mah Sing as its top picks.

 

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