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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Rate Cuts Set to Boost Capital Inflows into Malaysian Property Sector

 

RHB Research has reiterated its "overweight" rating on the Malaysian property sector, anticipating significant capital inflows and increased buying interest as global interest rates begin to decline.

Institutional investors, property buyers, and developers are expected to ramp up capital deployment, supported by the US Federal Reserve's recent rate cuts, which signal the start of a more accommodative monetary environment. The US Fed reduced interest rates by half a percentage point this week, marking an aggressive move to ease monetary conditions.

RHB predicts Malaysia, particularly in high-growth areas, will remain an attractive market for both local and foreign property investors. The stabilizing ringgit and favorable interest rates further enhance Malaysia's position as a prime destination, especially for data centre (DC) investments and real estate transactions.

"Malaysia's strategic location as a hub for data centre investments should continue driving land and DC transactions," RHB noted in its property outlook report, adding that high-growth areas will likely see strong demand from both local and foreign property buyers.

Strong Demand in Nusajaya Property Market

RHB highlighted robust demand for recent property launches in Nusajaya, Johor, particularly from developers UEM Sunrise Bhd and Sunway Bhd. Recent soft launches saw units oversubscribed by three to four times, reflecting the growing interest in the Iskandar Malaysia property market.

The firm expects this trend to continue, bolstered by key projects like the Johor-Singapore Rapid Transit System (RTS) and the Johor-Singapore Special Economic Zone (JS-SEZ), which are set to enhance cross-border connectivity and attract further foreign direct investments (FDIs) into the region.

Top Picks and REIT Potential

RHB's top property sector picks include Sime Darby Property Bhd (KL) with a target price (TP) of RM2.00, Mah Sing Group Bhd (KL) (TP: RM2.26), UEM Sunrise (KL) (TP: RM1.60), and Sunway Bhd (KL) (TP: RM5.00).

Additionally, RHB forecasts a rise in Real Estate Investment Trust (REIT) listings, spurred by the lower interest rate environment, which makes such moves more attractive for developers. Companies like IOI Properties Group Bhd and SP Setia have already signaled interest in listing their assets under REITs, while Sime Darby Property is seen as another potential candidate, with its investment portfolio including KL East Mall, Senada Mall, and Elmina Lakeside Mall.

The upcoming completion of the Google Data Centre in 2026 is expected to further boost Sime Darby’s portfolio by RM1.5 billion to RM2 billion, enhancing its long-term investment potential.

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