Share prices declined by Latest Property Cooling Measures

Last Friday, a slew of property cooling measures were put in place. Today is the first trading day on the Singapore Exchange after the announcement. How did property developer counters and local banks move against this backdrop?

As expected, both property companies and three local banks had their share prices declining to close lower from Friday’s closing figures.

The table below provides details on price movement of 12 property counters, 3 local banks, 2 relevant indices (FTSE ST Real Estate & FTSE ST Financials Index) and the Straits Times Index (STI).

Value @ 11 Jan Value @ 14 Jan Change
Property:
WingTai

2.02

1.84

-8.91%

City Dev

12.60

11.65

-7.54%

Kep land

4.28

3.97

-7.24%

Ho Bee

1.97

1.84

-6.60%

United Eng

3.32

3.13

-5.72%

CapitaLand

3.89

3.73

-4.11%

Sim Lian

0.80

0.765

-3.77%

Wheelock

2.00

1.925

-3.75%

BukitSem

6.74

6.54

-2.97%

UOL

6.24

6.06

-2.88%

SP Land

7.55

7.35

-2.65%

Hotel Prop

3.17

3.12

-1.58%

Bank:
UOB

19.22

18.78

-2.29%

DBS

14.70

14.41

-1.97%

OCBC

9.75

9.62

-1.33%

Indices:
FTSE ST Real Estate

809.30

796.45

-1.59%

FTSE ST Financials

822.03

809.31

-1.55%

STI

3216.50

3206.59

-0.31%

WingTai lost 8.91%, followed by City Development (-7.54%) and Keppel Land (-7.24%) so on so forth. CapitaLand lost 4.11% possibly because more than 50% of revenue originates outside of Singapore. Those property developers with operations in Singapore lost big.

Looking at the composite figure of FTSE ST Real Estate Index, the index only declined 1.59%. Almost all 12 property counters listed above declined more than the index.

What about local banks that provide housing loans for property purchases? UOB lost 2.29%, DBS lost 1.97% and OCBC lost 1.33%. They are impacted by the property cooling measures also. FTSE ST Financials Index declined 1.55%, which means that UOB and DBS fared worse than the index.

STI on the other hand declined 0.31%. If not for the property cooling measures, Singapore stock market may follow the rest of Asia/Pacific (ex-US) markets in rising higher today. STI is the only one in the red. Note that Shanghai Composite index rose spectacularly by 3.06% today! We did not catch the wind of positive investor sentiments.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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