MARKET UPDATES :
- HOUSING and Development Board (HDB) resale prices could have fallen in an eighth consecutive month, going by flash estimates from the Singapore Real Estate Exchange (SRX). The data shows HDB resale prices dipped 0.5 per cent in September from the earlier month, dragged down by price declines in three- room, four-room and five-room resale flats. Executive flat prices bucked the trend by inching up 0.1 per cent.
- SALE transactions of strata-titled industrial properties in the third quarter have fallen by about 36 per cent quarter-on-quarter to 203, according to caveats from URA Realis. The fall is even more significant compared to the 672 strata-titled units that were sold in the same period last year, said DTZ. So far, there has been 842 transactions this year. This is much lower than the 1,986 transactions registered in the same period last year.
- THE Monetary Authority of Singapore (MAS) on Thursday published a consultation paper containing a set of proposals to strengthen Singapore’s real estate investment trust (Reit) market. “The proposals will enhance the transparency and corporate governance of the Reit market,” it said.
- INVESTORS are flocking to take cover under Singapore bonds umbrella amid gathering clouds over the global economy. Even the weakening Singapore dollar has failed to dent their enthusiasm for the fixed income securities, in particular government bonds. While the Singapore currency fell 0.71 per cent against the US dollar last week, the Singapore Fixed Income (SFI) Index gained 0.22 per cent over the same period. The equity market, as measured by the Straits Times Index (STI), declined 1.18 per cent.
- THE International Monetary Fund (IMF) has issued a guarded assessment of global economic prospects for the coming year, and warned that financial markets could be “under-pricing risk” in an environment in which easy-money policies may have bred a false sense of security. The potential growth of the global economy appears slower than a decade ago, so it is unlikely to go back to the rates achieved before the global financial crisis – even with the aid of monetary stimulus, it said. An uneven global recovery is underway, said the IMF in its twice-yearly World Economic Outlook (WEO). In it, it revised down the 2014 growth forecast for the global economy from 3.7 per cent to 3.3 per cent; the forecast for next year is 3.8 per cent.
STOCK RECOMMENDATION :
- BUY CITY DEVELOPMENT LTD ABOVE 9.400 TG 9.460, 9.530, 9.630 SL 9.300