MIB Research Summary - 3 Oct 2014

PROPERTY Sector: Going South

New foreign entrants raise fears of a housing glut in Iskandar Malaysia (IM). Ability to absorb ample incoming supply of high-rise condominiums and retail space by end-2015/2016 remains our key concern. Maintain NEUTRAL; we prefer Klang Valley over IM. Top pick is Eco World (BUY; MYR6.59 TP). TECHNICALS: Headed towards 1,829 and below The FBMKLCI declined 7.64 points to 1,837.68 yesterday, while the FBMEMAS and FBM100 also closed lower by 70.70 points and 60.69 points, respectively. We expect weaker buying interest at the supports of 1,810 to 1,829, whilst heavy liquidation would be at the resistances of 1,837 and 1,854. Trading idea is a Take Profit call on ALAM with downside taret areas at MYR1.18 & MYR0.90.