Stocks Rise On Higher Home Rates

Source : TODAY, Tuesday, July 31, 2007

SINGAPORE’S stocks rose for the first time in four days, led by property stocks after second-quarter private-home prices climbed at the fastest pace in eight years.

A measure of property stocks had the biggest percentage decline last week among the nine industry groups on the Singapore. All Equities Index on concerns the Government will introduce measures to slow the rise in home prices and office rentals.

“The rising residential prices show that the property market is retaining its momentum,” said Mr Najeeb Jarhom, head of research at Fraser Securities in Singapore.

“Concerns over government measures to cool the market were overdone.”

The Straits Times Index rose 1 per cent to 3,526.29 at close, snapping three days of losses. About three stocks climbed for each that declined. August futures gained 1.1 per cent to 429.3.

CapitaLand, the nation’s largest developer, climbed 2.8 per cent to $7.25, its first advance in six days. The company said it was setting up two property funds to invest in retail developments in China and India. Luxury home developer Wing Tai Holdings gained 4 per cent to $3.66. Citigroup raised its price forecast to $4.62 from $4.31 and kept its “buy” rating, citing rising residential property prices.

Singapore’s private-home prices rose 8.3 per cent in the second quarter, the fastest pace in eight years, as the city’s economic expansion allowed developers to sell apartments at record prices. — BLOOMBERG