Shares of Singapore property developer City Developments Ltd gained as much as 5 percent after home sales in the city-state rose 5.4 percent in May, boosted by new project launches.
City Developments shares jumped as much as S$10.57 on Tuesday, the highest since June 5. Nearly 2 million shares were traded, 1.2 times the average full-day volume over the past 30 days.
The stock led gains in the broader Straits Times Index , which rallied around 1.5 percent. Keppel Land Ltd rose 2.3 percent, while CapitaLand Ltd rose 0.6 percent.
Home sales in Singapore rose to 1,455 units last month from 1,380 units in April, the Urban Redevelopment Authority said. City Developments' Bartley Ridge condominium was among the best-selling projects, with 100 units sold in May.
"It's a bit of a knee-jerk reaction. Of the big-caps, City Developments is the most exposed to Singapore residential market. CapitaLand and Keppel Land have been diversifying out of Singapore," said Wilson Liew, an analyst at Maybank Kim Eng.
But Liew sees some headwinds in the property sector coming from a possible rise in mortgage rates and an increase in supply from 2015 onwards.
(Reporting by Eveline Danubrata; Editing by Supriya Kurane)
STOCKS NEWS SINGAPORE-ST Engineering gains on broker report
ST Engineering Ltd rose 2.6 percent and topped gainers on the benchmark index after DBS Vickers Securities said the stock's recent decline was unjustified as it offered upside from a recovery in the United States.
"Visible growth drivers are in place at Aerospace and Marine divisions, and also in Asia as well as in the US. With its strong balance sheet and net cash position, the group is well positioned to source for M&A for longer term growth," DBS Vickers said and maintained its "buy" rating with a target price of S$4.80.
ST Engineering earned 26 percent of its revenue from the U.S. in 2012. After a record high in late April, the shares fell as much as 22 percent to the year's low last week, but have risen 12 percent from the lows. So far this year, the stock is up 4 percent at S$3.98, outperforming the Straits Times index . The index gained 1 percent on Tuesday.
ST Engineering said on Tuesday that UTC Aerospace Systems, a key supplier in Boeing's 787 Dreamliner program, and ST Engineering's aerospace arm had signed a long-term repair license agreement for maintenance, repair and overhaul services for UTC Aerospace Systems components on the Boeing 787 aircraft.