Malaysia Property Stocks on a 1-Month High, Thanks to Budget 2018
Bursa Malaysia Properties index surged +0.5% at 1244.72 points, the highest since September after the announcement of Budget 2018 as the government announced the allocation of RM2.2 billion for more affordable housing schemes.
Malaysian Resources Corporation leads index gainers, now rised +10.7% at MYR1.14. MIDF keeps an optimistic view on the sector and believes that the property market is on marginal recovery.
According to its investor note, developers like Mah Sing and UOA Development are main beneficiaries of the measures outlined by Budget 2018 as they will be carrying out numerous affordable housing projects.
They are projected to gain from the step-up end financing scheme, which will be extended to private developments. Mah Sing increased +0.6% at MYR1.57 as UOA Development surged +0.8 at MYR2.45.
The reintroduction of "MyDepositâ€ scheme will also help more home-buyers to buy a home with financial assistance to pay the down payment.
This article by Chong Sin Hao and Dave Chong first appeared in Nikkei Market on 30 October 2017.