Brokers expect booming private residential property sales in Singapore, especially in the mass market segment, to result in the government imposing another round of tightening measures.
"The bulk of the strong volumes represent demand for small mass market units that are substantially investment-driven in our view," CIMB Research said.
"Larger units, typically more suitable for owner occupation, have seen slower take-up. With mass market prices showing little signs of relenting, we see pressure mounting for further tightening measures," it said in a report.
CIMB kept its neutral rating on the sector and highlighted CapitaLand Ltd as its top pick and has an underperform rating on City Developments Ltd. CapitaLand's shares were down 1.7 percent at S$2.9 and have gained 31 percent so far this year, outperforming the broader market.
Private home sales excluding executive condominiums surged to a record 6,682 in the first quarter, the highest since the first quarter of 1996 when the Urban Redevelopment Authority began compiling the quarterly data.
"We do not discount the possibility of further measures in the shoe-box segment, although we highlight the volumes are supported by favourable interest rate environment, affordability levels and strong liquidity," Credit Suisse said.
For a related story, click.
1255 (0455 GMT)
(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)
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10:45 STOCKS NEWS SINGAPORE-K-REIT up on results; CIMB upgrades stock
The unit price of real estate investment trust K-REIT Asia rose 3.2 percent after the company's distribution per unit nearly doubled in the first quarter to S$1.90 cents.
The strong results prompted CIMB Research to upgrade its rating to outperform from neutral and raise the target price to S$1.11 per unit from S$0.93.
K-REIT units rose to S$0.97 in a weak broader market, with more than one million units traded, 1.3 times the average full-day volume traded over the past 30 days. Units in peer CapitaCommercial Trust were down 1.1 percent.
"Backed by attractive yields of 8 percent and improving office indicators, we think its risk-reward now favours a positioning for a bottom," CIMB said in a report.
Out of 16 brokers tracking the stock, three have a buy, nine have a hold and 4 have a sell or strong sell rating. K-REIT units have risen nearly 17 percent this year.
For the company's results, click:
1015 (0215 GMT)
(Reporting by Harry Suhartono in Singapore;harry.suhartono@thomsonreuters.com)
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09:27 STOCKS NEWS SINGAPORE-Barclays trims M1's forecasts, target price
Barclays trimmed its profit forecasts for M1 Ltd by 6 to 7 percent for the fiscal years 2012 and 2013 after weaker than expected first quarter results by Singapore's number three mobile phone operator.
The broker also lowered its share price target to S$2.65 from S$2.70 but kept its "equal weight" rating on M1's stock.
M1, which also provides high-speed broadband home Internet, reported a 5.3 percent fall in first quarter net profit to S$40.3 million ($32.24 million) as growth in operating expenses outpaced a rise in revenues.
Its earnings margin before interest, tax, depreciation and amortisation slipped to 40.1 percent in the first quarter from 42.2 percent a year earlier, partly due to higher mobile phone handset subsidies and spending on broadband subscriptions.
"The expectation is for margins to improve from here into the year given the stable earnings guidance on a year-on-year basis," Barclays said in a report.
M1 shares were down 0.41 percent in early trade at S$2.43, underperforming a relatively flat Singapore Straits Times Index .
(Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com)
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08:44 STOCKS NEWS SINGAPORE-Index futures lower
Singapore index futures fell 0.12 percent early on Tuesday, indicating the benchmark Straits Times Index would open lower.
The euro eased early on Tuesday as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness overeuro zone debt.
