Source : The Business Times, April 17, 2008
Shares of property developers rose after a research report said that a strong Singapore dollar will spur the Singapore property market.
Canadian-based BCA Research said that a firmer Singapore dollar will depress interest rates and propel real estate prices, the Business Times reported on Thursday.
CapitaLand, Southeast Asia's largest developer, soared 4.8 per cent to $6.71 (US$4.95) with 3.4 million shares traded.
Southeast Asia's second-largest developer, City Developments, rose as much as 3.6 per cent to $12.06, with over 450,000 shares traded.
Keppel Land gained 4 per cent to an intraday high of $5.93 with over one million shares changing hands.
According to a Merrill Lynch report, the fall in private homes last month suggested weakness in the sector but it believed property stock prices have factored the slowdown.
Merrill Lynch analysts recommended investors to buy shares of City Developments and CapitaLand and assigned target prices of $16.30 and $7.27, respectively.
'Not only do these companies have the strength to ride through a weak cycle, they will also be in the best position to reap the benefits should the property market pick up again,' Merrill Lynch said in a client note. -- REUTERS
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