KUALA LUMPUR: Most property stocks closed lower, with SP Setia the main drag, on Tuesday, Jan 18 as the previous day's gains evaporated following the lack of follow-through buying support during this holiday-shortened trading week.
The FBM KLCI closed down 4.45 points to 1,570.04, compared the record close of 1,574.49 the previous day. Turnover was 1.7 billion shares valued at RM2.02 billion.
The broader market displayed the lack of enthusiasm from investors to take fresh positions, with declining counters beating advancers more than four to one. There were 731 losers, 174 gainers while 230 stocks were unchanged.
Analysts said there could have been some disappointment over SP Setia's proposed fund-raising exercise via a share placement of 15% of new shares to raise RM1.14 billion.
The property had on Monday confirmed that it had obtained approval-in-principle from the government to develop the 40-acre prime land in Bangsar to develop luxury residential and integrated commercial products.
SP Setia has a 50% stake in this project after a 20% profit share with the Ministry of Health. ECM Libra estimated the gross development value to be around RM8 billion and that will add 24 sen to RNAV.
ECM Libra Research said despite the land deal being positive, share price has appreciated significantly.
'Current valuation at FY11 P/E of 24.7 times is already above 2.0 times standard deviation and 22% above RNAV of RM5.50. Even rolling over target price to FY12 and maintaining 20 times P/E to derive revised target price of RM6.00, valuation still look expensive. As such, we believe all positives have been priced-in and advise investors to take profit. Downgrade from Hold to Sell,' it said.
SP Setia-WB fell the most, down 35 sen to RM1.88, SP Setia 29 sen to RM6.41, Selangor PROPERTIES [] 16 sen to RM3.94, SunCity and Mitrajaya 14 sen lower at RM4.55 and RM1.83.
Hing Yap fell 22 sen to RM1.57 as investors sold the stock after an unconditional takeover offer at RM1.50 per share by Everest Hectare Sdn Bhd which had acquired 50.02%.
SAAG was the most active with 66.7 million shares done, down 0.5 sen to 13 sen.
Tambun Indah, which made its debut on the Main Board, ended the first day 10.5 sen higher at 80.5 sen with 41.47 million units done.
PLANTATION []s were among the gainers, with KL Kepong up 18 sen to RM22.76, United Plantations 14 sen to RM16.68 and PPB eight sen to RM17.50.
The FBM KLCI closed down 4.45 points to 1,570.04, compared the record close of 1,574.49 the previous day. Turnover was 1.7 billion shares valued at RM2.02 billion.
The broader market displayed the lack of enthusiasm from investors to take fresh positions, with declining counters beating advancers more than four to one. There were 731 losers, 174 gainers while 230 stocks were unchanged.
Analysts said there could have been some disappointment over SP Setia's proposed fund-raising exercise via a share placement of 15% of new shares to raise RM1.14 billion.
The property had on Monday confirmed that it had obtained approval-in-principle from the government to develop the 40-acre prime land in Bangsar to develop luxury residential and integrated commercial products.
SP Setia has a 50% stake in this project after a 20% profit share with the Ministry of Health. ECM Libra estimated the gross development value to be around RM8 billion and that will add 24 sen to RNAV.
ECM Libra Research said despite the land deal being positive, share price has appreciated significantly.
'Current valuation at FY11 P/E of 24.7 times is already above 2.0 times standard deviation and 22% above RNAV of RM5.50. Even rolling over target price to FY12 and maintaining 20 times P/E to derive revised target price of RM6.00, valuation still look expensive. As such, we believe all positives have been priced-in and advise investors to take profit. Downgrade from Hold to Sell,' it said.
SP Setia-WB fell the most, down 35 sen to RM1.88, SP Setia 29 sen to RM6.41, Selangor PROPERTIES [] 16 sen to RM3.94, SunCity and Mitrajaya 14 sen lower at RM4.55 and RM1.83.
Hing Yap fell 22 sen to RM1.57 as investors sold the stock after an unconditional takeover offer at RM1.50 per share by Everest Hectare Sdn Bhd which had acquired 50.02%.
SAAG was the most active with 66.7 million shares done, down 0.5 sen to 13 sen.
Tambun Indah, which made its debut on the Main Board, ended the first day 10.5 sen higher at 80.5 sen with 41.47 million units done.
PLANTATION []s were among the gainers, with KL Kepong up 18 sen to RM22.76, United Plantations 14 sen to RM16.68 and PPB eight sen to RM17.50.
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