Reuters: Hot Stocks: STOCKS NEWS MALAYSIA-Hong Leong downgrades property sector

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STOCKS NEWS MALAYSIA-Hong Leong downgrades property sector Oct 29th 2012, 03:27 Sun Oct 28, 2012 11:27pm EDT Hong Leong Investment Bank downgraded Malaysia's property sector companies to 'neutral' from 'overweight', saying an increase in property gains tax is expected to weigh on an already slowing market. "The most direct and negative impact will be a slowdown in transactions in the secondary market," the bank said in a research note on Monday. Property gains tax will rise by 5 percentage points across the board in 2013 as the government tries to rein in speculation. "With the latest round of Real Property Gains Tax hike, we now expect the sector to be headed for a slowdown in terms of launches, sales and transactions," the bank said. Hong Leong said it expects the affordable segment of the market to perform better than the mid-to-higher end segment and Mah Sing Group and Glomac should be more adaptable to the shift in market conditions. "Between the two, we prefer Glomac, as their landed townships which are currently selling for 400,000-450,000 ringgit which fits the affordable segment definition," the bank added. At 1052, both Glomac and Mah Sing were unchanged at 0.82 ringgit per share and 2.27 per share respectively. The benchmark composite index was up 0.26 percent at 1676.17. 1101 (0301 GMT) ********************************************************** STOCKS NEWS-RHB raises Daibochi to outperform RHB Research upgraded Daibochi Plastic and Packaging Industry Bhd to 'outperform' from 'market perform' after the packaging material maker posted strong results for the first nine months of 2012. Daibochi's net profit for the first nine months rose 30 percent to 18.4 million ringgit from 14.2 million ringgit last year, prompting RHB to increase its target price for the stock by 41 sen to 2.91 ringgit. RHB also raised its net profit forecasts for the next two years between 7.3 percent and 11 percent. "We raise our forecasts to reflect the higher-than-expected third quarter results and improved margins," said RHB in a report on Monday. Margins expanded due to a favourable sales mix and improved wastage control, added RHB. Shares of the company rose 1.53 percent to 2.66 ringgit, their highest in 16 years. 1029 (0229 GMT) (Reporting by Al-Zaquan Amer Hamzah in Kuala Lumpur; Editing by Anand Basu; alzaquan.amerhamzah@thomsonreuters.com) **************************************************************** STOCKS NEWS MALAYSIA-Affin downgrades Berjaya Sports Toto Affin Investment Bank downgraded Malaysian betting firm Berjaya Sports Toto to 'add' from 'buy' to reflect recent gains in the company's share price. The bank said in a research note on Monday that the firm's shares had risen just over 7 percent since mid-June, taking them closer to Affin's target price of 4.95 ringgit per share. Berjaya Sports Toto is slated for a listing on Singapore's stock exchange in January 2013. "In the longer run, the Singapore listing could help provide better financial funding and capital management flexibility," Affin added. At 1001 (0201 GMT) Berjaya Sports Toto shares were unchanged at 4.43 ringgit per share while the benchmark composite index was up 0.33 percent at 1,677.42 1005 (0205 GMT) (Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Sunil Nair; siva.sithraputhran@thomsonreuters.com) Link this Share this Digg this Email Reprints

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