STOCKS NEWS MALAYSIA-Kenanga raises KLCC Property's target price

Kenanga Research raised its target price on KLCC Property Holdings Bhd to 6.87 ringgit from 6.00 ringgit on the potential listing of the property company's real estate investment trust (REIT).

"We strongly believe the KLCC Property REIT-ing exercise will take place within the next 12 months, given the strong price run-ups, which was similarly observed with IGB Corp Bhd's

KrisAssets Holdings Bhd performance prior its IGB REIT announcement," the research house said in a note on Friday.

Maintaining its 'outperform' call on the counter, Kenanga said the higher target price assumed that all of KLCC Property's investment properties (except LotD1 landbank) will be REIT-ed.

The higher target price was also based on the assumption of 100 percent payout (similar to sizeable Malaysian REITs) and a gross dividend yield target of 4.6 percent for the year ending Dec 31, 2013.

By 0400 GMT, KLCC Property shares were 0.16 percent lower at 6.18 ringgit, underperforming the broader index's 0.04 percent rise.

1202 (0402 GMT) (Reporting by Yantoultra Ngui in Kuala Lumpur;