MONEY MASTER

  Key Market Movements (Feb 26, 2025) FBMKLCI rose 1.32% to close at 1,588.710 , marking a strong session for Malaysian equities. FBM 70 gained 0.78% (17,003.340), while FBM SCAP edged up 0.22% (16,153.010). FBM Emas Index increased by 1.09% to 11,884.270. Top Gainers & Losers FBM KLCI Movers Top Gainer:   CDB (6947.MY) surged 3.18% to RM3.570. Top Loser:   Nestlé (4707.MY) fell 1.69% to RM88.480. FBM 70 Movers Top Gainer:   Padini (7052.MY) jumped 9.94% to RM1.770. Top Loser:   Penta (7160.MY) dropped 5.45% to RM3.120. Malaysia REITs Movers Top Gainer:   Sunway REIT (5176.MY) gained 2.15% to RM1.420. Top Loser:   IGB REIT (5227.MY) declined 1.02% to RM1.940. Most Active Stocks Maybank (1155.MY) saw high trading volume , rising  1.45% to RM8.750 , with a turnover of RM250.30 million. Summary: Malaysia’s stock market ended higher, with FBMKLCI up 1.32%. CDB led the gains, while Nestlé recorded the biggest loss on the index. Padini was the stron...

CapitaLand Investment Ltd, one of Asia’s largest property investors, has flagged potential losses as it works to reduce its exposure to China’s troubled real estate market. The Singapore-based firm plans to cut its China exposure to 10-20% of its targeted S$200 billion in funds under management by 2028. Currently, 27% of its S$113 billion portfolio is tied to China. This transition could result in “fair value or divestment losses” that impact its near-to-medium-term earnings , the company said during its Investor Day presentation on Friday. Key Points China Exposure Reduction: CapitaLand aims to decrease reliance on China, citing years-long real estate downturns that have hurt investments in office space and malls. Current Divestment Progress: Of the S$4.6 billion in divestments this year, most assets sold were in Singapore and Japan , with limited sales in China. Target Adjustments: The company plans to divest about S$1 billion in China this year, but as of early November, o...

Axis Real Estate Investment Trust (Axis REIT) has successfully raised RM449.73 million through a private placement exercise aimed at supporting its strategy to pursue high-quality, yield-accretive acquisitions and enhancing its existing portfolio. The issue price was set at RM1.71 per unit , representing a 5.1% discount to the volume-weighted average market price of RM1.802 per unit . This private placement is Axis REIT's largest to date and highlights strong market confidence in its growth initiatives. In line with the enlarged unit capital resulting from the placement, Axis REIT has declared an advance fourth interim distribution of 1.10 sen per unit for income earned from Oct 1 to Nov 12, payable on Nov 29 . Leong Kit May, CEO and executive director of Axis REIT Managers Bhd, expressed that the success of this placement underscores strong market confidence in the REIT's growth strategy and commitment to reducing its financing ratio to allow for future portfolio expansion...

The Malaysian Real Estate Investment Trusts (M-REITs) have achieved a 7% year-to-date increase on the Bursa Malaysia REIT Index , according to the Malaysian REIT Managers Association (MRMA) . This growth has been attributed to peaking global benchmark interest rates and strong earnings growth fueled by sound fundamentals. The announcement was made at the MRMA's fourth REIT Forum , which was attended by Deputy Investment, Trade and Industry Minister Liew Chin Tong . Leong Kit May , Chair of MRMA and CEO of Axis REIT Managers Bhd , noted that M-REITs' commercial sub-sectors were bolstered by government policies, including the 30-day visa exemption for visitors from China and India . In the first half of 2024, tourism arrivals grew by 30% , and tourism receipts increased by 50% compared to the same period last year. Additionally, the industrial property sub-sector has benefited from stable occupancy rates and rising foreign direct investments (FDI) . Johor Bahru has em...

  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 contin...

An anticipated US policy rate cut this week is expected to positively impact Malaysian stocks, particularly in the oil and gas (O&G) , real estate investment trust (REIT) , and large-cap banking sectors , according to Kenanga Investment Bank . Historically, US rate cuts have been favorable for the FBM KLCI , yielding a median return of 8% over a 12-month period following the cut. The index has shown negative returns over a 12-month horizon on only three occasions out of the past ten rate cuts, the research house noted. "As all eyes this week will be on the US at the cusp of a rate decision, sentiment on broader equities will hinge not only on the extent of the cut but more so on the US Federal Reserve's (Fed) outlook ," Kenanga stated. The Fed is expected to announce its first rate cut in more than four years on Wednesday, though there is debate over the size of the reduction as inflation has eased and the employment market has cooled. The FBM KLCI has already gai...

  As of the noon market break on Wednesday, IGB Commercial Real Estate Investment Trust (KL: IGBCR) was identified by theedgemalaysia.com as a stock with negative momentum on Bursa Malaysia. The stock price remained unchanged at 49.5 sen. Key Points: Negative Momentum Indicator : The stock was flagged for having negative momentum, suggesting a potential downward trend based on higher-than-normal trading volume and price movements. The proprietary mathematical algorithm used to identify such stocks distinguishes between those showing positive (+ve) and negative (-ve) momentum. Market Implications : The negative momentum indicator does not serve as a buy or sell recommendation but provides insight into current market activity. It suggests that the share price could either rise or fall from its current position. Momentum trends, whether positive or negative, are generally short-lived. Fundamental and Valuation Scores Available : Each stock identified with momentum changes also comes w...

  CapitaLand Investment Ltd has announced plans to sell its 50% stake in Singapore’s high-end ION Orchard mall to CapitaLand Integrated Commercial Trust (CICT), a real estate investment trust it backs, as part of an asset-light growth strategy. The sale is valued at approximately S$1.85 billion (US$1.40 billion or RM6.18 billion). Key Details of the Transaction: Divestment Strategy : CapitaLand Investment, which holds a 24% stake in CICT, aims to reduce assets on its balance sheet by divesting its 50% interest in ION Orchard. The move aligns with its strategy to achieve asset-light growth. CICT, Singapore's largest REIT by market capitalization, will acquire the stake for about S$1.1 billion after adjusting for other factors. The REIT plans to finance the acquisition through the net proceeds from an equity fundraising. Transaction Completion and Impact : The transaction requires the approval of CICT’s non-interested unitholders and is expected to be completed by the fourth quarter ...

KUALA LUMPUR: Turnover rent structure has helped Hektar Real Estate Investment Trust (Hektar REIT) to manage rental pressures amid a weak retail environment coupled with the overbuilding of malls in the Klang Valley. Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, said that while the average rental reversion measured on base rent was reduced by 7.1% in the first half of 2017, the lower base rent was covered by turnover rent. The base rent is a fixed initial rent that has been agreed upon while turnover rent depends on the annual turnover of the retail’s business. “When the tenants do well and their sales go up, then they can afford to pay more rent as a percentage of that (increased revenue),” said Hektar Asset Management chief executive officer Datuk Hisham Othman. “This structure also allowed us to monitor the performance of our tenants and by having their sales figures in hand, we can foresee the direction of where the business is heading,” H...

Retain NEUTRAL with an unchanged target price (TP) of RM1.69 INVESTMENT HIGHLIGHTS 1QFY17 earnings within expectations Unexciting earnings on sequential basis Marginally weaker earnings on yearly basis Maintain NEUTRAL with an unchanged TP of RM1.69 1QFY17 earnings within expectations. CapitaLand Malaysia Mall Trust (CMMT) 1QFY17 core net income of RM40.24m was in line with our and consensus expectations, at 24% and 23% of our and consensus full year estimates respectively. Distribution per unit for the quarter is 2.08sen. Unexciting earnings on sequential basis.  On a sequential basis, 1QFY17 core net income of RM40.24m eased by a marginal 2% qoq, mainly due to lower contribution from Sungei Wang Plaza (SWP) and The Mines which offset the growing contribution from Gurney Plaza, East Coast Mall, and Tropicana City property. The weaker contribution from SWP was owing to the negative rental reversion consequent to the ongoing MRT construction works and c...