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.
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:
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
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.