KUALA LUMPUR (March 21): Share prices of Malaysian Real Estate Investment Trusts (REITs) fell this morning despite a positive market breadth, as cautious investors trimmed positions in a rising interest rate environment.
At the time of writing, Sunway REIT lost as much as 3.8% or six sen to RM1.52, Pavilion REIT declined 2.9% or two sen to a low of RM1.34, while KLCC Property Holdings Bhd inched down 1% or seven sen to RM6.94 thus far.
Industrial-centric Axis REIT slid one sen or 0.8% to a low of RM1.23, while YTL Hospitality REIT and Amanahraya REIT fell as much as 0.9% and 0.6% to RM1.08 and 84.5 sen thus far.
MRCB-Quill REIT too was not spared as it slipped 0.95% or one sen lower to RM1.04 by mid-morning.
A local analyst who declined to be named said some investors are being cautious as they are expecting higher interest rate and a weak distribution per unit (DPU) growth, which both work against REITs whose valuations were not cheap to begin with.
“The rising yield, or lower asset prices, does not go well for REIT prices. Prices needed to fall so that the yield goes higher to attract buyers,"
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