Singapore Stocks: City Developments, Singapore Air, SingTel
Property companies: City Developments Ltd. (CIT) , Singapore's second-largest real estate company, retreated 54 cents, or 7.2 percent, to S$6.98. Keppel Land Ltd. (KPLD SP), the third-biggest, declined 5 cents, or 2.5 percent, to S$1.95. CapitaCommercial Trust (CCT) , an office landlord partly owned by Southeast Asia's largest developer, lost 9 cents, or 7.7 percent, to S$1.08.
Goldman Sachs Group Inc. cut its share-price estimates for Singapore's developers by as much as 46 percent and lowered its price targets for the city's real estate investment trusts by as much as 49 percent, citing weaker office and retail rents. The brokerage also said it was ``premature'' to turn positive on property companies and said investors should avoid shares of developers.
Cosco Corp. Singapore Ltd. (COS) , the shipbuilding and repair unit of China's biggest shipping company, gained 2 Singapore cents, or 2.5 percent, to 81.5 cents, rebounding from a record 21 percent drop yesterday. Cosco Singapore said yesterday after the close of trading any delay in vessel orders or payments by customers won't have a ``material'' impact on earnings. The company also said its customer MPF Corp., which has sought bankruptcy protection, has paid $98 million for a $119 million vessel so far and hasn't said it won't pay the remainder.
Kim Eng Securities today raised its recommendation on the stock to ``buy'' from ``hold,'' saying that valuations were ``verging on ridiculous.''
Keppel Corp. (KEP) , the world's biggest builder of shallow-water oil rigs, slipped 46 cents, or 8 percent, to S$5.27, its lowest close since April 2005. UBS AG cut its share-price estimate for the company to S$11.15 from S$13.35, saying that a deteriorating global economic outlook will hurt earnings.
Olam International Ltd. (OLAM) , a commodities supplier, slumped 16 cents, or 13 percent, to S$1.06, its largest loss in almost two weeks. Corn futures for December delivery fell 5.7 percent yesterday to the lowest since November 2007, while soybean futures for November delivery fell 4.2 percent, touching the lowest since August 2007.
SembCorp Marine Ltd. (SMM) , Singapore's second-biggest builder of oil rigs, tumbled 28 cents, or 14 percent, to S$1.76, the biggest loss on the Straits Times Index. Cazenove Asia Ltd. cut its rating on the shares to ``in-line'' from ``outperform,'' citing a slowdown in new orders for offshore rigs.
Singapore Airlines Ltd. (SIA) , Southeast Asia's largest carrier, dropped 52 cents, or 4 percent, to S$12.40 after saying its September passenger traffic declined 1.6 percent from a year earlier to 1.514 million passengers. That's the first drop in more than three years.
Singapore Exchange Ltd. (SGX) , the operator of the city-state's securities and derivatives markets, lost 25 cents, or 5.9 percent, to S$5.54, halting a three-day, 9.7 percent rally. First-quarter profit fell 35 percent from a year ago to S$84.5 million as slowing economic growth and the widening global financial crisis crimped share trading, the company said. Morgan Stanley and Credit Suisse Group cut their share-price forecasts amid a worsening outlook for trading volume and stock offerings.
Singapore Telecommunications Ltd. (ST) , Southeast Asia's largest phone company, slumped 15 cents, or 5.5 percent, to S$2.56, the lowest in two years. It was the biggest drag on the Straits Times Index. New Zealand's Telecom Corp. has withdrawn from a Singapore Telecommunications-led group bidding to build Australia's national high-speed Internet network. The Singapore company said it plans to pursue its bid.
Separately, the company said its offer to buy the shares it doesn't already own in Singapore Computer Systems Ltd. (SCS SP) will close on Oct. 31. It currently holds about 92.3 percent of the company.
Yangzijiang Shipbuilding Holdings Ltd. (YZJSGD) , a Chinese shipbuilder, tumbled 2.5 Singapore cents, or 7.9 percent, to 29 cents, a record low. Deutsche Bank rated the shares ``sell'' in new coverage, citing the outlook for orders.
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