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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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IGB REIT Downgraded to ‘Hold’ After 22% Rally, Analysts Eye Limited Upside

IGB REIT’s impressive 22% surge this year has prompted analysts to downgrade the REIT to a 'hold' rating, despite slightly higher fair value targets for the Mid Valley Megamall and The Gardens Mall operator.

AmInvest and Maybank Investment Bank (Maybank IB) highlighted that IGB REIT’s valuation now appears stretched compared to peers like Sunway REIT and Pavilion REIT. The unit price of IGB REIT, currently trading at nearly two times net asset value (NAV), contrasts with competitors hovering just over one time NAV.

“We see limited upside potential after the stock’s strong rally," Maybank IB said, noting that they had not factored in potential new assets into their forecasts. Both firms anticipate IGB REIT’s next growth catalyst will be the acquisition of Mid Valley Southkey Mall in Johor Bahru, a fully occupied property expected to see rental renewals in 2025.

AmInvest raised its fair value to RM2.28 from RM2.11, citing lower cost of capital assumptions, while Maybank IB bumped its target price to RM2.22 from RM2.15 after adjusting its valuation years.

Despite the strong rental income growth from Mid Valley Megamall and The Gardens Mall—with average gross monthly rental rising 13.5% and 1.4% year-on-year, respectively—analysts feel the REIT’s rally has peaked for now. On Tuesday, IGB REIT units dropped 3.21% to close at RM2.11, valuing the REIT at RM7.62 billion, with a historical dividend yield of 4.96%.

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