Shares of Singapore property developer City Developments (CTDM.SI) rose as much as 2.8% on Monday, boosted by hopes interest rates would stay pat in the near term after U.S. lawmakers reached a deal to escape default, traders said.
At 12:34 p.m., shares of CityDev were traded at $10.85 while fellow property developer Hongkong Land (HKLD.SI) rose 2.8% to US$6.91.
At 12:34 p.m., shares of CityDev were traded at $10.85 while fellow property developer Hongkong Land (HKLD.SI) rose 2.8% to US$6.91.
CapitaLand (CATL.SI) gained 1.4% at $2.94 with over 11 million shares changing hands. This was 1.4 times its average daily volume over the last five sessions.
“Previously there were worries U.S. interest rates could spike if it defaulted, which would be negative for property developers. Now that the U.S. has struck a deal, investors are more confident that interest rates would remain stable at least in the near term,” said a local trader.
U.S. President Barack Obama said on Monday leaders from both parties reached a deal to cut the budget deficit by US$1 trillion ($1.2 trillion) over 10 years, with additional savings of US$1.4 trillion possible.
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