Shares dip at midday on property stocks but downside limited

Singapore shares fell by midday on Monday as data from China raised concerns about a slowdown in the world’s second largest economy, and property stocks with significant exposure to the Chinese market were hammered.

By the lunch break, the Straits Times Index (STI) <.FTSTI> was down 0.65%, or 20.06 points, at 3,058.29. The total value of shares traded in the morning session was $658.7 million, higher than $556.1 million on Friday.

Local traders said support for the STI may kick in at around 3,050 points in the afternoon.

 

“The market has received a slew of negative news recently, such as lower than expected bank loans in China and weak China export data,” said Ng Kian Teck, an analyst at SIAS Research. “These issues depressed STI’s performance.”

 

He added that investors were also worried about the U.S. recovery and the possibility of a debt default by Greece. 

 

China released data late on Friday showing a smaller-than-expected trade surplus of $13.1 billion in May because of soaring imports and weaker growth of global demand. Figures on Monday showed Chinese banks extended fewer new loans than expected in May.

 

Property stocks with significant exposure to the China market fell on concerns about easing demand. At midday, CapitaLand (CATL.SI) retreated 3.7%, Keppel Land (KLAN.SI) dipped 5% and Yanlord (YNLG.SI) was 2.3% lower.

 

Sentiment for Singapore-listed property stocks has also been hit after the Singapore government said last week it will release more land for private housing in the second half of this year. It also warned home buyers to be mindful of the potential supply.

 

Shares of Singapore-listed container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) fell as much as 4.2% as analysts expect weak shipping rates due to a potential oversupply in the market and lower-than-forecast shipments.

 

By the break, NOL stock was trading at $1.58 with 8.4 million shares changing hands.

 

However, Singapore medical technology firm Biosensors (BIOS.SI) outperformed the broader market on the back of its plan to acquire the 50% remaining stake in a stent maker for $625.4 million.