S'pore Property Stocks Fall After Scrapping Of Deferred Payment

Source : The Straits Times, Oct 29, 2007

PROPERTY stocks fell in morning trading on Monday, following last Friday night's news that the Urban Redevelopment Authority will scrap the deferred payment scheme to slow down the overheating in the property market and escalating real estate prices.

City Developments was the biggest loser of the session, followed by SC Global Developments. City Developments dropped 60 cents, or 3.68 per cent, to $15.70, while SC Global fell 35 cents, or 5.98 per cent, to $5.50. CapitaLand dipped 5 cents, or 0.62 per cent, to $8.

Despite this, Singapore's Straits Times Index, rose 27.06 points, or 0.72 per cent, to 3798.61, boosted by gains in banks. DBS rose 50 cents, or 2.27 per cent, to $22.50. UOB rose 1.39 per cent to $21.90, and Oversea-Chinese Banking Corp gained 0.6 per cent to $9.15. Together, they contributed 14.75 points to the measure. Of the STI's main components, 22 gained, 17 fell and eight were unchanged.

STI's rise is in line with other Asian bourses, fuelled by mounting expectations of a cut in US interest rates. Hong Kong's Hang Seng Index continued its spectacular run from Friday. It soared 1086.75 points, or 3.57 per cent, to 31491.97.

STI closing

SINGAPORE share prices closed 1.3 per cent higher Monday as investors cheered strong corporate earnings for the third quarter, dealers said.

The Straits Times Index gained 48.23 points to 3,819.78 on volume of 2.64

billion shares valued at 3.16 billion Singapore dollars .

Risers outnumbered decliners 533 to 284, with 856 issues unchanged.

'Investors are looking at the (possibility of US interest rate cuts) but corporate results have also been quite good, providing firm support,' said Mr Chan Wai Chee, research head at Phillip Securities.

'Earnings are good, and the money supply growing at double-digits for some time now will continue to support future earnings.'

South-east Asia's biggest bank DBS Group rose 30 cents to 22.30, United Overseas Bank was up 40 cents to 22.00 and Oversea-Chinese Banking Corp was flat at 9.10.

Singapore Airlines fell 10 cents to 19.70 and Singapore Telecom dipped eight cents to 4.08. Keppel Corp rose 20 cents to 14.70.

Among the property stocks, CapitaLand advanced five cents to 8.10, Keppel

Land was steady at 8.35 and City Developments eased 50 cents to 15.80. -- AFP