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ECM Libra neutral on property sector

ECM Libra Investment Research has maintained its neutral recommendation on the property sector.

It said while the property sector has bottomed out and was recovering, conditions were not sufficient to re-rate it.

ECM Libra said its stock picks remained selective, preferring mid- to small-capitalised property developers where valuations were more compelling.

"Among the picks are Sunway City, for its resilient property investment earnings while there is potential upside from recovering property development earnings, and Sunrise due to its strong brand name and prime landbank," it said in its research note today.

 

It said there was pick-up in commercial activities in August following the acquisition of a 50 percent stake in Menara Citibank by Hap Seng Consolidated, as well as the sale of an eight-storey corporate block in Southgate commercial centre by Mah Sing to Koperasi Permodalan Felda Bhd.

ECM Libra said Glomac was also finalising the sale of a 30-storey corporate tower at its Glomac Damansara project to a government agency.

It said following a pick-up in property transactions in recent months, more developers were now planning new property launches. "Among them are IJM Land, Mah Sing, Selangor Dredging, Dijaya Corp, GuocoLand, MRCB, Metro Kajang, TA Enterprise and TSR Capital," it said. - Bernama

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Copyright 2008 ECM Libra Financial Group Berhad. All rights reserved.