Singapore shares were slightly lower at the midday break on Tuesday, weighed by losses in property stocks on concerns that an increase in supply of land for development may dampen prices and hurt developers.
State investment firms, Singapore’s Temasek and Malaysia’s Khazanah, said they will jointly develop $11 billion worth of projects in six land parcels near Singapore’s central business district. The projects, which will have office, residential, hotel and retail components.
State investment firms, Singapore’s Temasek and Malaysia’s Khazanah, said they will jointly develop $11 billion worth of projects in six land parcels near Singapore’s central business district. The projects, which will have office, residential, hotel and retail components.
“There are continued worries that the government could introduce more measures to cool the mass market segment,” said Carey Wong, an investment analyst at OCBC Investment Research.
“The recently announced developments between Singapore and Malaysia could potentially result in a larger supply of residential and commercial land and add to worries that there’ll be too much supply in the market,” said Wong.
City Developments (CTDM.SI), Southeast Asia’s second-largest property developer, fell 2.1% to $10.24 at the lunch break.
By the midday break, the Straits Times Index (STI) <.FTSTI> was down 2.69 points at 3,045.59. The total value of shares traded in the morning session was $579.8 million, from $547.9 million on Monday.
“In Singapore, there are very few positive catalysts and the recent rebound in the STI could be attributed mainly to short covering rather than genuine buying. I expect the market to still trade sideways going forward,” said Wong.
Local traders said they expect the STI to trade in the 3,010 to 3,050 points band in the afternoon.
Global Logistic Properties (GLP) (GLPL.SI), which owns warehouses in China and Japan, rose as much as 3.5% on expectations it will expand further into China’s booming logistics market.
At midday, its shares were 1.5% higher at $2.01 with over 8.2 million shares changing hands.
“GLP’s recent developments in China have sparked expectations that its expansion plans in the country are underway and that we may see more developments on this front,” said a local trader.
GLP said on Monday it signed a strategic partnership agreement with Japanese manufacturer Unicharm to develop logistics facilities for the firm in China.
Offshore supply vessel builder STX OSV (STXO.SI) rose 6.2% to $1.38 after JPMorgan initiated coverage of the firm with an overweight rating and said it expects STX OSV to benefit from the industry’s next leg of capacity expansion, traders said.
Technology firm DMX Technologies (DMXT.SI) jumped 6.2% to $0.345 after it said it will launch a new mobile enterprise platform aimed at targeting the $4.1 billion Chinese market, traders said.
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