Property stocks take the lead, govt to abolish RPGT
Posted on | March 22, 2007
By THE EDGE
Property stocks took the lead in early trade on March 22, after the Prime Minister said the government would not impose the real property gains tax (RPGT) throughout the country with effect from April 1.
At 10am, the KLCI had risen 1.5% or 18.15 points to 1,227.49. There were 699 million shares done. Advancing counters swamped decliners 601 to 59. The property sector index rose 21.4 points to 871.37.
Asian markets were also higher. Japan’s Nikkei 225 jumped 1.69% or 290.91 points to 17,454.11, South Korea’s Kospi added 0.68% to 1,452.71 while Singapore’s Straits Times Index gained 1.95% to 3,217.10.
Prime Minister Datuk Seri Abdullah Ahmad Badawi announced at the Invest Malaysia conference that the government would not impose the real property gains tax (RPGT) throughout the country with effect from April 1.
He also said the government would reduce its shareholdings in government-linked companies by private placements and by structured sale commitments.
Wall Street rallied after the Federal Reserve left interest rates unchanged at 5.25%. The Dow Jones Industrial Average closed 1.3% or 159.42 points higher to 12,447.52.
Aseambankers Equity Research said since key interim technical indicators were reaching
the overbought zone level, it remains to be seen whether the KLCI will have the staying power to re-challenge the previous high of 1,283.
“At this juncture, the KLCI is expected to continue its run up to the 1,225-1,230 level but cautions investors to adopt the 5%-10% stop loss strategy to avoid any sudden steep reversals in the near-term,” Aseambankers Research said.
Among the property stocks, IOI Properties added 30 sen to RM10.90 while SP Setia rose 20 sen to RM7.55, Sunrise and Naim Cendera added 10 sen each to RM2.51 RM4.14 while WCT Land rose nine sen to RM1.23. Mah Sing, Hunza Properties and Glomac rose eight sen each to RM4.96, RM2.18 and RM1.55.
Among the gainers were Bursa, up 50 sen to RM11.20 while DiGi, KL Kepong and Muhibbah added 30 sen each to RM17.70, RM11.340 and RM4.92 respectively.
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