Investment: REIT attraction for long-term investors

From The Edge Malaysia
28th Jan 2014

A SCALE back of the US Federal Reserve’s bond-buying programme and the possibility of rising interest rates have reversed investor sentiment on real estate investment trusts (REIT), sending prices tumbling. Going ahead however, as yields begin to rise, there could be some decent buying opportunities emerging in the sector for investors willing to take a longer view.

With yields in excess of 6% for some mall REITs and 7% for office REITs, there is only a small opportunity cost from holding REITs while taking a medium-term view. At the same time, there is room for upside through capital gains.

21/1/2014 - GAMUDA,SUNWAY,TOPGLOV

Personal Technical Analysis
21st Jan 2014

GAMUDA

Support: 4.30, 4.13
Resistance: 4.46

SUNWAY

Critical Support: 2.54, 2.60

Resistance: 2.68, 2.79, 2.86

TOPGLOV

Support: 5.45

Resistance: 5.50, 5.75

Dividend yield lowest in five years; loses appeal amid current market rally

From Star Online: Business
6th Jan 2014

PETALING JAYA: The past 12 months have seen a great run for the stock market, with the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) registering more than 10% gain for the year.

But the surge in blue chip stock prices have pushed dividend yield for quality companies down to their lowest level since 2009.

A quick check showed that Malayan Banking Bhd’s dividend yield is the highest at 5.57% among the top 30 counters that make up the FBM KLCI, followed by Maxis Bhd and British American Tobacco (M) Bhd with commendable 4.5% yields for both.

This is higher compared with the index’s dividend yield of 3.28%, according to Bloomberg data.

Yield play has lost some of its appeal, with prices of real estate investment trusts (REITs) taking a hit in recent months amid a switch to the bond market