DAILY MARKET UPDATES 11th July 2008

Brokers’ Take: Property Sector – OCBC Investment Research
Several property developers have indicated the willingness to delay launches as residential property prices are showing signs of weakness, while others are pointing to still strong demand. While the delay in property launches looks negative, it is actually a good move to regulate the supply of units. OCBC expects to see further weakness in residential property prices and sentiment is likely to remain cautious. With foreign investors turning wary and the decline in global equities, this could affect demand for high-end property units. Overall, OCBC is positive on the office and industrial segments. OCBC remains positive on the outlook for the HDB market, which should be supported by the positive supply and demand dynamics.

- The Business Times, P8



Bugis makeover wins global award
The Urban Land Institute - a non-profit institute that specialises in land use and urban development handed the URA an excellence award for its work in the Bras Basah-Bugis area. Springing up soon in Bugis and Bras Basah includes South Beach – a 3.5 ha site in Beach Road scheduled for completion in 2012, Bras Basah MRT Station and Iluma – a mall located on an 8,921 sq m site opposite Bugis Junction.

- The Straits Times, H11



Biomed drag slows Q2 growth to 1.9%
Even as the economy slowed more than expected in the second quarter, economists are optimistic about a rebound in Q3 – assuming no further pharmaceutical plunge. The economy shrank 6.6% in Q2 over Q1 on a seasonally-adjusted annualised basis, according to flash estimates. In year-on-year terms, the economy grew just 1.9% in Q2, according to MTI's advance estimates of Q2 growth from April and May data. The slower growth has prompted some shaving of the full-year GDP growth forecasts in the private sector. But the estimates still fall broadly within the government's 4-6% range. Most economists believe the economy is more resilient than the growth figures suggest, as the weak spots are largely centred in the biomedical sector.

- The Business Times, P1



Korean won jumps, yuan sets fresh high
The South Korean won jumped yesterday on official comments indicating support for the currency and modest dollar-selling intervention. The won rose as high as 994.9 per dollar, up 1% from Wednesday's 1,004.9, but later steadied near 1,000 per dollar. The Bank of Korea kept its key interest rate unchanged at 5%. The Chinese yuan hit a fresh post-revaluation high at 6.8442 per dollar, bringing its gains for this year to 6.7%. The Singapore dollar was largely steady near 1.36 per US dollar. The Indonesian rupiah gained 0.2% to 9,155 per dollar, its strongest level since April 2.

- The Business Times, P8


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