Property players here take a tumble
LOCAL shares drifted lower yesterday over concerns about the faltering property market here and lacklustre results from blue chips SingTel and City Developments (CDL).
The benchmark Straits Times Index slipped 6.6 points to 3,294.8, with CDL and CapitaLand among the top five laggards.
CDL shed 2.7 per cent or 27 cents to $9.78, while CapitaLand dropped 1.8 per cent or six cents to $3.29. Developer UOL was down as well, off three cents to $6.33.
CDL executive chairman Kwek Leng Beng said yesterday: "The macroeconomic environment of domestic and international markets, while unpredictable, appears to be stabilising.
"Singapore's property landscape continues to experience challenging headwinds.
"CDL's business model is evolving, with growth focused on new geographies and products. We will accelerate our overseas expansion initiatives to supplement existing operations. CDL is looking actively in Japan and Australia, and we hope to establish our platforms in these markets by the end of the year."
The developer's net profit plunged 32.8 per cent to $137.9 million in the three months to June 30, while revenue rose 5.9 per cent to $861.1 million.
Other top actives included Golden Agri-Resources, up 0.5 cent to 53 cents, with 65.5 million shares changing hands. The world's second-largest palm oil plantation company posted a 40 per cent plunge in net profit to $27 million for the second quarter ended June 30, while revenue jumped 21 per cent to $2.04 billion.
Meanwhile, shares of Genting Singapore edged up 0.4 per cent or 0.5 cent to $1.275, with 8.65 million shares changing hands. The casino operator released its second-quarter earnings after the market closed.
Genting Singapore, which runs the Resorts World Sentosa integrated resort - posted a 27 per cent plunge in second-quarter net profit attributable to shareholders to $102.3 million, from $140.2 million a year earlier. Revenue rose 6 per cent to $751 million from $707.9 million.
The company cited a slowdown in visitor arrivals to Singapore, particularly from core markets including China. Persisting uncertainty in the global macroeconomic environment and geopolitical conflicts continue to weigh on Singapore's economic outlook as well, it said.
SingTel shed 1 per cent or four cents to $3.87, with 12.2 million shares changing hands, after reporting a 17 per cent drop in first-quarter profit, hurt by one-off items and adverse currency movements.
OCBC Investment Research maintained a "hold" call yesterday, saying: "As results were mostly in line with our forecast and guidance was also within our expectation, we opt to leave our estimates unchanged."