Singapore shares fell to their lowest level this year, largely in line with regional markets, on worries about China's slowing economic growth and continued uncertainty over the U.S. bond-buying programme.
The Straits Times Index dropped as much as 1.3 percent to 3,159.52 points on Tuesday, the lowest since Dec. 24 last year. MSCI's broadest index of Asia-Pacific shares outside Japan also shed 0.9 percent.
DBS Vickers said the valuation of the Singapore index is becoming attractive as it now trades "comfortably" below the 13.9 times average 12-month forward price-earnings level.
Jardine Matheson Holdings Ltd and Jardine Cycle & Carriage Ltd led the decline, with each falling more than 3.5 percent. Property developers CapitaLand Ltd and Hongkong Land Holdings Ltd fell 3 percent each.
Shares of Ramba Energy fell for the fourth session in a row to as low as S$0.595, since hitting a record high of S$0.79 last Monday. The stock has been falling after the company said a potential buyer had expressed interest in acquiring a 51 percent stake at an indicative offer price of S$0.60-S$0.70.
The possible offer will be conditional upon the approval of the Securities Industry Council of Singapore and due diligence by the interested party, among other things.
(Reporting by Eveline Danubrata in Singapore; Editing by Prateek Chatterjee) (firstname.lastname@example.org; +65 6403 5669; Reuters Messaging: email@example.com)
11:31 STOCKS NEWS SINGAPORE-DBS says palm oil prices to remain under pressure
DBS Vickers expects planters to continue underperforming regional indices as crude palm oil prices are likely to remain under pressure for the rest of the year.
It has 'hold' ratings on Wilmar International Ltd, Bumitama Agri Ltd and Indofood Agri Resources Ltd . However, DBS has a "buy" rating and S$2.14 target price on First Resources Ltd.
Malaysia's palm oil production edged up 1.3 percent to 1.384 million tonnes in May from a month earlier, while inventories slid 5.1 percent to 1.816 million tonnes, data from the Malaysian Palm Oil Board showed on Monday.
China's port-based palm oil inventory further expanded by 9 percent month-on-month to 1.386 million tonnes, indicating that the country's palm oil imports will probably remain flat ahead of this year's mid-Autumn festival, DBS said in a report on Tuesday.
Subject to stronger exports elsewhere, Malaysian palm oil inventories are hence expected to pile up again to 1.825 million tonnes in June and peak at 2.14 million tonnes in December, pushing palm oil prices down, DBS said.