Broker's call


  • Business Premium
  • Saturday, 31 Jan 2009

Axis REIT (RM1.40 to add in price on Friday as at Jan 30) COMMENT by Kenanga Research: We recently attended Axis REIT FY08 result briefing, which added the following points to our previous meeting with management.

1) A lower overnight policy rate of 2.5% (-75 basis points) bodes well for medium-term financing, followed by reducing base-lending rates from 6.5% to 5.95%. Hence, we can expect conversion of RM93mil revolving credits into 3-year Islamic term loans by 1Q09. At lowered interest rates, medium term financing costs should be comparable to Axis’ short-term rates (4.35%-4.65% p.a.).

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