Malaysia Morning Wrap | Bank Islam Malaysia Issues RM250 Million in Second Tranche of RM5 Billion Sukuk Program

Good morning mooers! Here are things you need to know about today's market:

● The market showed very modest change. Chinese stocks fly continuously

● Decline in MGS yield promotes REITs to be more appealing

● Stocks to watch: Sunway, Bank Islam Malaysia, Pertama Digital, etc.

-Moomoo News MY

Kenanga Research mentions that local real estate investment trusts (REITs) are expected to become increasingly appealing as the yield on Malaysian Government Securities (MGS) is projected to drop further by the end of the year. The firm notes that following the influx of net foreign investments into Malaysia's bond market, the MGS yield is likely to decrease to 3.6% by the end of the year, having already fallen from 4% to 3.7%. This decrease in MGS yields will likely highlight the disparity withREITyields even more, potentially attracting more investors looking for yields to increase their holdings, according to a report by Kenanga Research. The report also forecasts robust growth for the retail sector, as both mall occupancy and rental rates have shown slight improvements. For the first half of 2024, occupancy rates in shopping centers rose to 78.1%, up from 77.4% in the second half of 2023. Furthermore, the report suggests that initiatives such as the rationalization of the diesel subsidy have had little effect on consumer behavior.

The Federal Agricultural Marketing Authority (FAMA) plans to annually export roughly 300 tonnes of processed chicken from Peninsular Malaysia to Sabah, allocating an estimated budget of RM3 million forprocurement.This action is to satisfy the demand for processed chicken from Sabah, which now mainly relies on import from Thailand and China."Italso supposed to help expand domestic demand and trigger the development of livestock and agricultural industry." The chairman of FAMA also said.