Singapore shares were slightly lower at midday, weighed by
property firms, as investors waited on the sidelines for more
signs of progress in resolving the U.S. "fiscal cliff" budget
Property developers were among the biggest losers, with City
Developments Ltd falling 2 percent to S$12.94, while
CapitaLand Ltd dropped 1.6 percent to S$3.61.
However, commodity companies such as Noble Group Ltd
rose 2.6 percent to S$1.18, and Olam International
was up 1.4 percent at S$1.495.
In a stock exchange filing, Olam said Singapore state
investor Temasek had raised its stake in the commodity
trader to 17 percent from 16.99 percent.
OCBC Investment Research said more privatisation of
Singapore residential property companies could happen, such as
Wheelock Properties (Singapore) Ltd and Ho Bee
Investment Ltd, which are both trading at attractive
levels of 0.79 times and 0.76 times respectively, and have
relatively small free floats.
"Given the current environment of low borrowing costs and
steep trading discounts to restated net asset value for high-end
developers, it is likely that a spate of privatisation activity
lies ahead," said OCBC.
The brokerage forecasts mass market home prices to rise by
up to 5 percent in 2013, while high-end home prices could fall
by up to 10 percent next year.
1137 (0337 GMT)
(Reporting by Charmian Kok in Singapore; Editing by Prateek
10:48 STOCKS NEWS SINGAPORE-Macquarie Intl Infrastructure
Units of Macquarie International Infrastructure Fund Ltd
(MIIF) rose as much as 3.2 percent after it announced
a one-off special dividend following a strategic review.
By 0239 GMT, MIIF units were traded at S$0.645 and have
risen 21.7 percent since the start of the year.
After a strategic review done by MIIF's board, it decided to
implement certain initiatives such as distributing existing
excess cash to shareholders as a one-off special dividend and
seek to divest some of its assets.
"MIIF's latest move should enable the fund to further
realise its net asset value given the decent quality of the
remaining underlying assets, but no timeline has been set to
avoid any impression of a fire-sale," said DMG & Partners in a
DBS Vickers raised its target price on MIIF shares to S$0.65
from S$0.58 and kept its 'hold' rating on expectations investors
could receive a special dividend of 3 Singapore cents, on top of
a final dividend of 2.75 Singapore cents for the second half of
However, it noted that it could be difficult and time
consuming for MIIF to realise the true values of its
investments, given the uncertainties involved in the process.
1036 (0236 GMT)