S’pore Stocks Rebound

Source : TODAY, Wednesday, August 1, 2007

Property stocks rise after Government announces non-interventionist policy

SINGAPORE stocks rose yesterday after National Development Minister Mah Bow Tan (picture) said the Government will depend on “non-interventionist” measures such as providing more information and increasing supply to keep property prices and rentals in check



Stocks were also boosted after CapitaLand posted a five-fold surge in secondquarter profits.

The Government’s comments “are positive sentiment- wise” for property stocks, said Mr Phillip Yeo, senior portfolio manager at DBS Asset Management, which oversees US$15 billion ($22.7 billion)in assets. “We’re cautiously optimistic as the property market is still in mid-cycle.”

The Straits Times Index gained 0.6 per cent to close at 3,547.66. The measure is little changed for the month. August futures added 1 per cent to 433.9.

Private-home prices rose 8.3 per cent in the second quarter, the fastest in eight years, as economic expansion allowed developers to sell apartments at record prices.

A measure of property stocks is the biggest percentage loser this month among the nine industry groups on the Singapore All Equities Index, following the Government’s July 18 move to raise a tax that realestate companies must pay to develop properties.

CapitaLand shares climbed 3.5 per cent to $7.50, its biggest gain since June 29.

K-Reit Asia and Suntec Real Estate Investment Trust advanced after buying stakes in the same office complex in Singapore’s business district. K-Reit, an office property trust, gained 3.5 per cent to $2.94. Suntec, a real-estate trust controlled by Hong Kong billionaire Li Ka-shing, climbed 2.2 per cent to $1.90.

Keppel Land and Cheung Kong Holdings sold their one-third stakes in One Raffles Quay to K-Reit and Suntec respectively for $941.5 million each.

SC Global Developments, a builder of luxury homes, climbed 3.4 per cent to $6.10. The real-estate developer won a site in a gated community with a private yacht club on Sentosa with a $268.3-million bid.