News Highlights - Malaysia Airlines, SP Setia, Healthcare sector, M-REIT Sector

Malaysia Airlines Bhd (RM1.06/share)

Husni: Govt to keep close watch on MAS

MAS has been instructed to submit reports to the Government on its turnaround plan. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the Government would monitor closely the airline’s performance to ensure that it remained competitive. MAS is currently undergoing restructuring process and it will take time for the changes to bear fruit. MAS would also be looking into making changes and suspending some flights to ensure profitability. The Government felt that MAS and Air Asia would be better off as separate entities while looking into other ways to collaborate – The Star

SP Setia Bhd (RM3.70/share)

RM1bil a year for new land

SP Setia Bhd is allocating RM1bil yearly to acquire new land for future development in the Klang Valley, Penang and Iskandar Malaysia. President and chief executive officer Tan Sri Liew Kee Sin said replenishing its landbank in the shortest time possible would place the company in a better position compared with other developers. This move was vital as the company would be able to continually launch new projects as the takeup rate for its properties was good. Sufficient landbank is the life-line for SP Setia without which it would not be able to properly plan future projects. Among Kuala Lumpur, Penang and Iskandar Malaysia, getting new land in Penang was the most difficult due to the space constraint there. – The Star

Healthcare sector

IFC plans to invest in Khazanah healthcare arm

International Financial Corp (IFC), is planning to take part in the planned US1.5bilm listing of Malaysia’s Integrated Healthcare Holdings (IHH) in a move to help validate IHH’s emerging markets strategy. The largest global development institution focused on the private sector in developing countries said the move would help healthcare firm with its pan Asia expansion strategy. Listing of IHH in Singapore and Malaysia was expected to be the fourth-biggest initial public offering in the city state’s history and Malaysia’s second largest this year after planned listing of Malaysian plantation group FELDA Global Venture Holdings. IHH which is expected to debut on the Malaysian and Singaporean bourses by end of July, has started to invite approved bumiputra investors to submit expressions of interest in subscribing for its shares. – The Star

M-REIT sector

Renewed interest seen in M-REITs

Continued volatility in global stock market is expected to generate renewed interest in M-REITs in the medium term. With stock market expected to be in for a correction the narrow trading bands of M-REITs would absolve them from the shocks in global markets. M-REITs market’s liquidity and depth would improve with new REIT listing like the Mid Valley Megamall and Gardens RIET by IGB. There is still high level of interest in M-REITs among institutional and retail investors and IGB REIT listing is no exception. There is still an appetite for more listings in the future and will definitely develop M-REIT market into a much a more liquid market which will in turn attract more foreign investors-The Star

 Source: AmeSecurities