Why do REIT stocks in Malaysia have such low volumes?

Is it a problem for you guys regarding liquidity?

Wanna start invest soon, and REITs seem like the safest stocks to start with.

I was told retail REITS (CMMT, SUNREIT, PAVREIT, HEKTAR) are the safest, what say you?

This post has been edited by bryan5073: Mar 7 2012, 07:43 PM

I think during uncertain times, people tend to move their cash to safer assets, and reits are some of the safer assets. That's why they've been on the rise.

Plus some more, like somebody said earlier, reits have been under our local media coverage lately.

So perhaps these 2 factors has caused the rise in price of reits.

Correct me if i'm wrong

Haha beats me. I also haven't started to invest yet coz no $$$ But i've been learning a lot

I guess we really missed the the dip last August...

That was a great time to go shopping!

Haha sure, u go buy first la, I still need to accumulate some cash...

Let me know how well they do

For OSK, the minimum brokerage fees is RM28 or 0.4% of what you gonna pay, whichever comes first. 500 units means only 5 lots, means the RM28 charged up front, it's gonna take some time for the stock to gain back the 28 for you...

Sell then buy some more units at cheaper price! Right?

Thanks cherroy, hope people gets more informed and excited about REITs, really like them. In terms of safety, I've checked that REITS have one of the lowest beta among all stocks, everyday move also move a bit only (unless there's news la)

So what do you think? Is there any?

NAV = Intrinsic Value right?

I know how calculate Intrinsic Vale but dunno how to calculate NAV. They're more or less the same, right? I think NAV is given in most of the financial statements of the companies right?

By the way, between the 2, which is more important to look at for REITs?

Erm... Both my OSK188 and CIMB itrade also didn't show NAPS leh... What platform are you using?

Great......

Ya wait till the market dip like last august

REIT is an Investment Trust so it's like a Unit Trust listed in the stock exchange, very much like Closed Ended Fund (icap). Correct me if I'm wrong

But it's listed on the stock exchange wo, how can it be open ended leh?

Haha. Open ended is usually for unit trust which have limitless units where managers can keep adding units to it. Closed-ended is for stocks listed on the exchange where the units is limited and it's subject to supply and demand. When less people want the stock, price will go down. If many people want the stock, price will go up.

SUNREIT down 3 cents, CMMT down 6 cents. These two are the most steady REITs in the market. Does today drop indicate the increase of investors' risk appetite into riskier stocks now that global sentiment has improved?

Thanks cherroy. So now means that sentiment is not too bad and not too good, right?

Since somebody claim Sunreit drop in price is due to recent news which I assume is the refurbishment of Sunway Putra Place using 200mil, isn't it actually a good thing? Why price drop? Or it's just temporary? Don't understand market psychology...

But it's for the better future wo... I heard it's 200million right?

So, sunreit drop 3 sen coz need to fork out $ to refurbish mall while CMMT drop 6 sen coz will issue rights.

Jeez, don't anybody goes for long term value investing no more?

Point taken

So in the long run, if the global or local economic condition recovers (or at least no crisis), reits price will go up steadily right?

*Axis Reit were once RM1.++ and now it's RM2.7!

This post has been edited by bryan5073: Mar 17 2012, 12:32 AM

I think buying all the reits would over-diversify already. It's against Buffett's philosophy already - too many stocks, cannot focus. Besides, buying so many reits at one go would cost a lot of entry fees (is this the right term? ).

Minimum cost for CIMB is RM12 for one stock so RM12 x 15 reits = RM180!

IMO, focusing on the reits' industry looks like a better option, say if one chooses retail reits or healthcare reits, which are IMO very stable reits. Office reits, last time I read, aren't doin well coz occupancy rate is very low, especially in Klang.