Singapore Stocks: CapitaLand, Chartered, Keppel, Yangzijiang

Singapore’s Straits Times Index closed down 18.85 points, or 1.1 percent, to 1,704.52, its second day of decline. Almost three shares fell for each that rose.

Property developers: Singapore developers tumbled to their lowest levels in more than a month on concern the decline in private housing prices will accelerate after the government forecast the city’s worst ever recession.

CapitaLand Ltd. (CAPL) , Singapore’s biggest developer, fell 8 cents, or 3 percent, to S$2.61. City Developments Ltd. (CIT), the second biggest, dipped 25 cents, or 4.4 percent, to S$5.5. Both stocks are trading at their lowest levels since Dec. 5.

Singapore said its economy may shrink by a record 5 percent this year as exports slump.

“This is the worst recession ever, property demand will continue to decline,” said UOB Kay Hian Pte analyst Vikrant Pandey, who projects property prices will fall 20 percent this year.

Chartered Semiconductor Manufacturing Ltd. (CSM SP), the world’s third-largest chipmaker, jumped 3.5 cents, or 15 percent, to 26.5 cents, the most since Jan. 8, on speculation it may be a takeover target.

“There’re a lot of rumors about the sale of Chartered,” said Kevin Tan, a Singapore-based analyst at Oversea-Chinese Banking Corp., who’s reviewing his “hold” rating. “Operationally, the semiconductor industry is in for a very rough ride and companies like Chartered are going to find the going very, very tough.”

Chartered spokeswoman Celestine Lim couldn’t immediately be reached for comment.

Keppel Corp Ltd. (KEP) , the world’s biggest rig builder, dropped 11 cents, or 2.7 percent, to S$4.404, its lowest close since Dec. 5, after UBS AG cut its price estimate by 33 percent to S$6.8 because demand for rigs and property will slump as the global economic recession deepens.

Yangzijiang Shipbuilding Holdings Ltd. (YZJSGD) ,the fourth-largest shipbuilder listed in Singapore, fell 1 cent, or 2.1 percent, to 47 cents, after Macquarie Bank Ltd. initiated coverage of the stock with an “underperform” rating, saying the stock is trading at “unjustifiably expensive” valuations.

Yangzijiang is trading at 1.7 times its book value, higher than the average of 1 times for shares on the index, according to data compiled by Bloomberg.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

To contact the editors responsible for this story: Darren Boey at dboey@bloomberg.net.

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