DAILY MARKET UPDATES 15th November 2008

Shrinking demand hits India exports This week, snap figures for last month's exports indicated that shipments have contracted 15 per cent from a year earlier. Should oil products exports be taken out of the basket, the shrinkage will be 20 per cent. The Indian government is holding on to projections that the US$1.2 trillion (S$1.82 trillion) economy will expand at least 7 per cent in the coming fiscal year, but private sector economists are far less sanguine. By far the biggest threat to livelihoods may be in India's vast textile industry, the second-largest source of employment after agriculture.
- The Straits Times, A12
Asia key to solving crisis: ExpertsAsia has a vital role to play in helping lift the world out the global slowdown, according to the Asian Economic Panel. Major regional economies should have a coordinated policy framework in place by this weekend's meeting of the Group of 20 economies in Washington, where the United States and Europe are expected to offer different proposals for sweeping reforms of the global financial system. The three major Asian central banks should provide large credit swap lines between themselves to expand the current swap lines the US has already extended to South Korea to supplement its shrinking foreign exchange reserves. The three countries should also announce joint fiscal expansion but with measures appropriate to their individual situations.- The Straits Times, C21
Strong property, F&B sectors boost profit Net profit rose 15.1 per cent to $436 million for the year ended Sept 30 while profit after tax hit a record of $568 million - up 14 per cent from last year. Revenue was up 4.7 per cent to $4.95 billion. Good performances in the food and beverage, investment property and Reit segments underpinned the result but this was partially offset by a fall in revenue from development property and the printing and publishing unit. The firm is delaying launching two projects, at Lakeside Drive and Sirat Road, that had been scheduled for next month. Excluding translation differences and an impairment charge of $19.1 million from a writedown on an investment in Kingway Brewery Holdings, profit before interest and taxation actually grew 25 per cent. - The Straits Times, C23
Wheelock takes $85m impairment loss on SC Global Wheelock Properties' losing bet on SC Global Developments has left the firm with an impairment loss of $85 million. It bought a 10 per cent stake in SC Global in June last year at $6 per share or $112.1 million then, and purchased more on the open market this year. The share price of SC Global, which has since done a two-for-one stock split, closed one cent down at 57 cents yesterday. Wheelock's share of SC Global is now 16.05 per cent. Revenue rose 21 per cent to $229.53 million, as the firm commenced recognition of the sold units in Scotts Square. It was partially offset by lower revenue recognition from earlier projects like The Sea View and lower dividend income from Hotel Properties and SC Global. Looking ahead, the group aims to launch the 30-unit Orchard View for sale next year.- The Straits Times, C23
UIC's 3rd-quarter profit soars 90%United Industrial Corp (UIC) yesterday posted a staggering increase in net profit of 90 per cent to $48.3 million for its third quarter ended Sept 30. Revenue was also up by 56 per cent to $212.2 million. Subsidiary Singapore Land also posted positive results, with net profit up by 32 per cent to $39.8 million and revenue rising 25 per cent to $89.7 million. The bright results were due to higher property sales and rental income and increased revenue from Pan Pacific Singapore hotel operations. In spite of the positive results, however, UIC expects the office and retail rental market as well as the residential property market to be weak, in view of the current global financial turmoil and economic downturn.
- The Straits Times, C24
(See also, The Business Times, P10, “SingLand, UIC report higher Q3 net, bucking industry trend”)
Writedown math may sully developers' booksSmaller home developers have already started cutting prices and this will raise the pressure on other listed property groups to make writedowns. This will whittle bottom lines, which have already started to shrink during the latest quarterly reporting season. Developers who snapped up land at the market peak in 2007 and early 2008 will face much greater pressure for writedowns than those who bought in the early stages of 2005. Evidence of office rents slipping has also begun to emerge. Potential investors also demand higher yields on office acquisitions today than 12 months ago. These two factors point to lower office valuations. Downward revaluations of investment properties like office blocks would hit developers' bottom lines under Financial Reporting Standard 40 for most property groups.- The Business Times, P2
Ex-CEO of CapitaMall Trust Mgmt joins DLFPUA Seck Guan, the high-profile former CEO of CapitaMall Trust Management, is joining Indian real estate giant DLF to head its international operations. One of Mr Pua's key tasks at DLF will be to lend his mall and asset management expertise to boost the performance of the group's retail property portfolio. DLF has more than two dozen malls. Mr Pua is also expected to lead DLF's expansion outside India, probably starting with China and South-east Asia. Once equity market conditions improve, DLF could still launch an office Reit in Singapore.- The Business Times, P17
Citigroup to cut 10,000 jobs: reportCitigroup Inc is cutting at least 10,000 jobs in its investment bank and other divisions throughout the world, the Wall Street Journal said. This is even as it was reported yesterday that Citigroup Inc CEO Vikram Pandit and three deputies bought a total of 1.3 million shares in the US bank on Thursday in a show of confidence after the stock fell below US$9 for the first time in 12 years.- The Business Times, P21

Rosewood Suites
- Within convenient walking distance of Causeway Point & Woodlands MRT
- Luxurious condominium facilities: 3-storey clubhouse, full gym, 50m lap pool, Jacuzzi, waterjet play area
- Near schools (including American School), shopping malls, parks & amenities
- Easy SLE access
- 2 bedroom from $435,000, 3 bedroom from $635,000
- Interest absorption scheme available
- Located at Rosewood Drive
- Developer: EL Development
- Marketing agents: HSR and Propnex
- Tenure: 99 years
- Expected TOP: 31 Dec 2012
- Expected date of legal completion: 31 Dec 2015
Ad, The Straits Times, C6
Teresa Villas- No 1 & 3 Bukit Teresa Road- Prices from $450 psf- No installment till TOP- Freehold premier cluster bungalows- 8 Luxurious bungalows from 5565 sq ft with private pool or Jacuzzi on a hilltop- Located at the centre of Sentosa & Marina Bay Sands Integrated Resorts- In the vicinity of Orchard Road, Vivocity, Financial Hub, popular schools & eateries- Convenient access anywhere with AYE, ECP, CTE & the Harbourfront MRT station nearby- Close to Mount Faber, Southern Ridges & famous clubs for leisurely pursuits- Bejeweled in designer fittings & tasteful furnishings by Duravit, Damixa & Bosch- Developer: Royal Oak Development Pte Ltd- Expected date of TOP: 30 December 2011- Expected date of legal completion: 30 December 2014- Marketing Agent: HuttonsAd, The Straits Times, A8

The Lucent- Located at Lorong N Telok Kurau-From $880 psf- Freehold 1 to 4 bedroom apartments & penthouses with private pool available- 5-seater family whirlpool on your balcony- Steam bath in your master bedroom- Private swimming pool & sundeck on your rooftop/ porch- Regally-appointed interiors with unparalleled ceiling height of up to 3.3m- Elegant communal recreational area with pools, gym, BBQ area & playground- Idyllic environment near East Coast Park & Siglap Centre- Within 1km from well-known schools (Tao Nan Sch, CHIJ & Victoria JC)- Developer: Roxy Land Pte Ltd- Marketing Agent: HSR- Expected date of TOP: 31 December 2012- Expected date of legal completion: 31 December 2015Ad, The Straits Times, A14
The Verte - Freehold apartment - From $800 psf - 35 apartment units, 1 townhouse - Duplex penthouses – roof terraces and private Jacuzzis - Townhouse – 3-storey with 4 bedrooms, private lap pool, personal car park, dual view of pool and park views - Lorong H Telok Kurau - Set against 100,000 sq ft of greenery - Outdoor decks, private plunge pools - 5 min walk to Kembangan MRT - Top schools nearby – CHIJ Katong Pri, CHIJ Katong Convent - Nearby attractions – East Coast Park, Katong Park, golf clubs such as Tanah Merah Country Club - Expected TOP: 31 Jan 2012 - Developer: Roxy Homes - Marketing agents: Savills The Straits Times, A15, Advertisement
Livia - “With land costing easily between $250 & $350psf coupled with high construction costs, developers’ break-event cost is at least $700psf. Livia’s average price of $650psf is definitely a steal.” – Jack Chua, ERA President & Peter Ow, Knight Frank Executive Director.
- 99-years leasehold condo (from 7 Jan 2008) - Located just 8 minutes from Pasir Ris MRT - Action Zone: ‘Xtreme Swing’, ‘Rocky Climb’, basketball half-court - Located just off Pasir Ris Drive 1 Surrounded by prestigious schools such as Singapore’s forth upcoming university at Upper Changi Road East and upcoming United World College
- 3-, 4-BR apartments and penthouses from $628 psf ($797,000) - Expected TOP: 31 Dec 2011 - Developer: Hong Realty - Marketing agents: ERA, Knight Frank The Straits Times, A27, Advertisement
Sandy Island - 18 villas designed by celebrated Italian architect, Claudio Silvestrin with multi-award winning Australian landscape designer, Jamie Durie
Southern precinct of Sentosa Cove - Private berth - 99-year leasehold from 13 June 2007 - Expected TOP: 28 Feb 2012 - Developer: YTL - Marketing agent: Savills - Average sizes: 7,500 to 9,200 sq ft - 3 villas sold - highest price at $2,100 psf - Prices from $13.9 million The Straits Times, B9, Advertisement
The Quartz Compassvale Pre-TOP Special New Release, New Showflat TOP 2nd Quarter 2009 3 Mins to Buangkok MRt 24 Hrs amenities Full Condo facilities Compass Point & shopping malls Good schools Great value for money Developer : Guocoland Group Marketing Agents : CBRE & ERA Tenure : 99 yrs from 15 April 2005 Expected date of Legal Completion : 30 June 2013 The Straits Times, C39, Advertisement