KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The recently announced incentives for Forest City’s Special Financial Zone (SFZ) are expected to provide a significant boost to the real estate sector, particularly in the Iskandar Malaysia region, according to a note by RHB Research on Monday.
RHB highlighted that the incentive package will have a positive spillover effect on property demand, commercial, and retail activities in the Iskandar region. Developers such as UEM Sunrise, Sunway Bhd, and Eco World Development Group Bhd are poised to benefit from the increase in real estate activity fueled by these incentives.
The incentive package aims to position Forest City as a hub for family offices, attracting both local and international investments, and creating job opportunities in the long term. The strategic location of Forest City, being close to Singapore, a financial hub, is expected to attract asset management companies, financial institutions, and high-net-worth individuals.
Several Singapore-based institutions have already expressed interest in the SFZ, pending further regulatory guidelines from the Securities Commission Malaysia (SC). Additionally, the incentives offer a harmonized 0% real property gains tax for foreign buyers after five years and a 50% stamp duty exemption on property transfers, making property investments more appealing.
RHB also noted that the revival of the Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) could serve as a major catalyst for the property market, benefiting developers along the alignment area from Singapore to Kuala Lumpur.
The research house maintained its “overweight” rating on the real estate sector, driven by stable interest rates, improving economic growth, and stronger investment inflows. Top picks in the sector include Sime Darby Property Bhd, Mah Sing Group Bhd, UEM Sunrise, and Sunway, all rated with “buy” calls.
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