Property companies’ earnings to stay stable

Throughout last year, most of the property stocks on Bursa Malaysia had been de-rated and priced for a recession in the sector.  

In the process, the selling pressure cut stock prices by half or less and as a result, their current price/earnings ratios (PEs) were halved to just 4.0 or 5.0 times. Such valuations usually precede a sharp downturn in the industry, or a general economic recession.