STOCKS NEWS SINGAPORE-CityDev drops to near 6-week low; index eases
City Developments Ltd's shares fell to their lowest in nearly six weeks, shrugging off a 48 percent surge in quarterly net profit on disposals of some non-core assets.
The financial sectoral index, of which CityDev is a component, was down 1.2 percent and weighed on sentiment.
The property and hotel company dropped as much as 1.9 percent to S$10.5, before recovering to S$10.56. The Strait Times Index fell 0.9 percent to 3,213.48, while Asian shares outside Japan measured by MSCI Asia-Pacific ex-Japan index eased 0.7 percent.
CityDev said its property rental segment was the main contributor to second-quarter earnings due to the gains from non-core asset sales, while the hotel business suffered from grown capacity in Singapore and uncertain economic conditions in Asia.
The company said it expected to remain profitable for the year, but warned about challenges in the second half due to measures taken by the government to reign in speculation in the property market.
"Transaction volume for private residential sales is beginning to be more measured and prices in general, are expected to be moderated for the mass market segment, due to the tightening of bank borrowings," it said in its earnings report.
Yongnam Holdings Ltd, a construction company bidding for airport projects in Myanmar, fell to a four-month low of S$0.28 after it said second-quarter net profit fell 28.6 percent.