Singapore shares fell to the lowest in nearly 2-1/2 weeks,
largely in line with regional bourses, after uncertainty over
Italy's elections raised fears of a resurgent eurozone debt
The Strait Times Index was down 0.5 percent at
3272.39, while the MSCI's broadest index of Asia-Pacific shares
outside Japan fell 0.8 percent.
The fall in the Singapore market was broad-based and the
biggest decliners included Global Logistic Properties Ltd (GLP)
, which fell 6.9 percent, and gaming operator Genting
Singapore PLC, which dropped 2.6 percent.
GLP shares dropped as much as 7.3 percent to S$2.55, the
lowest since late November last year, after Singapore sovereign
wealth fund GIC cut its stake in the warehouse operator
in a $1.25 billion sale.
Singapore unveiled a budget heavy on social spending on
Monday and imposed new curbs on companies hiring foreign workers
as the city-state tries to reduce its dependence on overseas
labour and address a widening income gap.
"Overall, we see the Singapore Budget 2013 as a budget for
the SMEs (Small and Medium Enterprises) and to also help lower
the living expenses of the residents," OCBC Investment Research
DBS Vickers expects business costs to increase, specifically
for industries with high labour content and reliance on foreign
labour. Sectors which will continue to face margin squeeze are
construction, services, manufacturing and marine, DBS said.
It maintains its preference for companies plugged to
external growth, with low domestic cost or wage content.
Its stock picks are Ezion Holdings Ltd, Hutchison
Port Holdings Trust, Singapore Technologies
Engineering Ltd, Neptune Orient Lines Ltd,
CapitaMalls Asia Ltd, Perennial China Retail Trust
and CapitaLand Ltd.
1251 (0451 GMT)
(Reporting by Teo Jion Chun; Editing by Jijo Jacob)
11:09 STOCKS NEWS SINGAPORE-GLP shares plunge after GIC cuts
Shares of Global Logistic Properties fell to a
three-month low after Singapore sovereign wealth fund GIC
cut its stake in the warehouse operator in a $1.25
GIC sold 596 million GLP shares at S$2.60 each, at the
bottom of a S$2.60-$2.66 per share indicative range, according
to a term sheet seen by Reuters.
GLP shares sunk as much as 7.3 percent to S$2.55 on Tuesday,
the lowest since late November last year. More than 617 million
shares were traded, 54 times the average full-day volume over
the past 30 days.
GLP, which has businesses spread across China, Japan and
Brazil, was the top traded stock by both value and volume in
Singapore on Tuesday. The benchmark Straits Times Index
was 0.6 percent lower.
But Roy Chen, an analyst at Phillip Securities, said the
stake cut by GIC does not change his 'neutral' rating on GLP
"GIC is just rebalancing its portfolio. The fundamentals of
GLP are actually quite strong," Chen said, citing the recent
recovery of China's economy and the company's projected
development of logistic properties. "The lease activity is also
still upbeat in China."
1058 (0258 GMT)