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
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
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
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
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.