DAILY MARKET UPDATES 31st October 2008

Boon Lay MRT extension (BLE) to open on Feb28
The BLE will help reduce travel time by 15 minutes by offering direct access to the MRT system instead of requiring bus transfers at Boon Lay station. It will also reduce the current high utilisation rate of Boon Lay bus interchange and Boon Lay MRT station. LTA has tightened the train passenger load indicator from 1,700 to 1,600 passengers per train, placing a limit on the number of passengers each train can carry. A new indicator - train headway - has been imposed to ensure that the intervals between trains during the peak periods do not exceed stipulated standards. The availability targets of key equipment such as lifts and escalators will be raised to minimise downtime. The 3.8km extension will benefit residents in Jurong West Town and those working in Jurong Industrial Estate. It has two stations - Pioneer Station at Jurong West St 63, and Joo Koon Station at Joo Koon Circle.
- The Business Times, P12
SPIO to be one-stop portal for state tenders: SLA
From tomorrow, state tenders will be launched only on its State Property Online Information (SPIO) portal - www.SPIO.sla.gov.sg - previously posted on the Government Electronic Business Portal (GeBIZ) and SPIO. Users can now follow the stages of the state tender, download all tender documents and check what properties are up for tender. They can also check when tenders open and close, the bids for each property, and the tender results and final award. A new archival feature of past tender information allows users to do market comparisons. The enhanced SPIO also includes better categorisation of information through building types. The public can also view and rent properties for residential use through SLA's open bidding system.
- The Business Times, P12
ST Index posts biggest jump in years
The Straits Times Index (STI) posted its biggest single-day surge in years, closing 130.7 points, or 7.82 per cent, up at 1,801.91. Hong Kong's Hang Seng closed up 12.8 per cent, while Seoul's Kospi closed 11.95 per cent up. Japan's Nikkei closed 9.96 per cent higher. Rate cuts by central banks were the spur, generating a surge in confidence among investors that Wall Street's negative showing failed to dent. Hours after the US Federal Reserve met market expectations by slashing its main policy rate to 1 per cent, China, Hong Kong and Taiwan followed suit. The Fed also announced it would pump US$30 billion (S$45 billion) each into the central banks of four emerging economies, including Singapore.
- The Straits Times, B23
High Court wants STB to hear Regent Court sale appeal
The Regent Court collective sale may yet happen: the High Court has thrown the case back to the Strata Titles Board (STB) to continue its hearing for the sale application. Regent Development agreed to buy Regent Court in April last year for $34 million. There were several objectors, with one claiming a financial loss of $93,935.75. Last December, the STB threw out the estate's sale application.
- The Straits Times, B25
IMF opens purse without strings attached
In the space of five days, the IMF has approved some US$35 billion in emergency loans to three countries - Iceland, Ukraine and Hungary - and several others, including Pakistan and Belarus, have asked it for help. And on Wednesday, the IMF said that it would extend up to US$100 billion more in short-term loans to developing countries that have been hit hard by the financial crisis but are sound economically, with no conditions attached. With the new facility, qualifying countries can borrow up to five times their quota - the amount each country contributes to the IMF - for three months.
- The Business Times, P2
(also see The Straits Times, B27, “IMF to the rescue”)
ST Index posts biggest jump in years
The Straits Times Index (STI) posted its biggest single-day surge in years, closing 130.7 points, or 7.82 per cent, up at 1,801.91. Hong Kong's Hang Seng closed up 12.8 per cent, while Seoul's Kospi closed 11.95 per cent up. Japan's Nikkei closed 9.96 per cent higher. Rate cuts by central banks were the spur, generating a surge in confidence among investors that Wall Street's negative showing failed to dent. Hours after the US Federal Reserve met market expectations by slashing its main policy rate to 1 per cent, China, Hong Kong and Taiwan followed suit. The Fed also announced it would pump US$30 billion (S$45 billion) each into the central banks of four emerging economies, including Singapore.
- The Straits Times, B23
(also see The Straits Times, B28, “Asian bourses make record gains”)
Relief worldwide as galloping yen stumbles
Asian currencies rallied yesterday on news of more rate cuts overnight, but the biggest relief came from the cut that Tokyo is expected to unveil today. The possibility that Japan will trim its already low 0.5 per cent interest rate halted the relentless march of the yen. The yen slipped between 13 and 19 per cent versus currencies like the euro, pound and Australian dollar from its recent highs. Currencies that had suffered the worst effects of carry trade reversals over the past week recovered sharply versus the Japanese unit in Asian trading yesterday. Versus the Singapore dollar, the Japanese unit also fell as much as 11 per cent from last week's S$1.6645 highs per 100 yen and finished the day above S$1.49.
- The Business Times, P1
Japan's package to dodge perfect storm
Japan's Prime Minister Taro Aso unveiled a five trillion yen (US$51 billion or S$74.8 billion) package of emergency measures to cushion Japanese institutions against shockwaves from the global financial crisis, bolster the Tokyo stock market and ease the pain of households. The latest package includes two trillion yen in the form of novel cash payouts to families. These are intended to stimulate consumption faster than tax cuts. Under the package, it will also expand tax relief on housing loans and cut highway tolls. There will also be cuts in corporate taxes for small businesses and expanded government guarantees on loans to small firms to help fund-raising. Tokyo stock prices soared, buoyed by expectations that the Bank of Japan's Policy Board will cut the central bank's policy lending rate and take other steps to ease monetary policy. Stock markets also rallied elsewhere in Asia, buoyed by hopes that monetary easing and large fiscal stimulus packages can stave off a severe global recession.
- The Business Times, P4
(also see The Straits Times, A11, “Japan’s big helping hand for families”)
New Orchard mall 60% leased ahead of opening
Orchard Central, the first of three new malls springing up in Orchard Road, is already 60 per cent leased five months ahead of its opening. Orchard Central, which has 12 floors and two basements, is expected to open in April, ahead of the other two malls. Far East is working hard to set the mall apart. It aims to open till 11pm daily and its rooftop garden and a covered walkway will be open to the public 24 hours. The mall even has a four-storey-high rock-climbing wall aimed at attracting its target group of shoppers aged 21 to 35. The mall's new F&B tenants also include a restaurant brand from Shanxi, China, and a Japanese brand. Rents at the mall remain in the range of $20 to $70 per sq ft, though they may soften a little. Data from the URA shows that shop rents dipped 0.6 per cent islandwide in the third quarter, reversing growth of 5.2 per cent in the second quarter. Retail sales volume fell 1.5 per cent year-on-year from June to August, due to cautious local spending and lower demand from tourists, the Monetary Authority of Singapore said.
- The Straits Times, A11
Siemens unveils corporate tech centre here
German technology firm Siemens has set up its first corporate technology (CT) centre in South-east Asia to do basic research, with the aim of sharpening competitiveness of its business units in the region. The centre, housed at the PUB Water Hub in Toh Guan Road East, will provide R&D and consulting services, as well as handle global patent management. Siemens also signed a pact with the German Institute of Science and Technology (GIST) to set up joint R&D projects here.
- The Business Times, P11
Italian envoy eyes stronger research links
Ambassador Umberto Vattani, head of the Italian Trade Commission said that Singapore and Italy have successfully expanded from a manufacturing base to services and research. He also called Singapore a 'formidable state' because it is active in many fields despite its small population. Although Singapore started off with manufacturing, it has developed in the areas of services and research as well, he said. Trade between Singapore and Italy reached $4.4 billion in the nine months to Sept 30, up 4.7 per cent from the $4.2 billion last year. He said that the Republic can become a hub for medical care as the talent and structure are already present. The Italian Embassy said there are about 1,000 Italians in Singapore, employed in different sectors. He feels that Singapore bears many similarities to 12th-century Venice - the city state that became an influential global trading centre. Singapore is an example, in the third millennium, of how a city state can be a great power.
- The Straits Times, B26
Singapore adopts fair value rule
Singapore has adopted recent amendments from a global accounting body aimed at giving companies more flexibility to cushion the impact of the financial turmoil. These changes deal with fair value or mark-to-market accounting rule. The Accounting Standards Council (ASC) said the amendments are appropriate for Singapore firms. They can be applied from July 1.
- The Straits Times, B26
Las Vegas Sands shares soar 80% after S'pore talks
Las Vegas Sands Corp shares soared a record 80 per cent in New York trading on Wednesday after the Singapore Government said it was in talks with the casino company to help complete a US$4 billion (S$5.9 billion) casino project in the city state. The talks with Singapore follow the casino operator's hiring of an investment bank last week to raise more capital. Shares of Las Vegas Sands rose US$3.96 to US$8.91 in New York Stock Exchange composite trading on Wednesday.
- The Straits Times, A11
Wing Tai Q1 gain falls 47%; revenue up 34%
Wing Tai Holdings said that its first-quarter profit fell 47 per cent to $32.6 million - from $61.8 million a year ago - as it saw lower profit contributions from associated and joint-venture companies. Earnings per share fell to 4.13 cents, from 8.58 cents for the corresponding three months in 2007. For the first quarter ended Sept 30, 2008, revenue climbed 34 per cent to $134.3 million, from $100.2 million in the previous corresponding period. Revenue for the current period came largely from the units sold in Helios Residences and The Riverine by the Park in Singapore, and Sering Ukay in Malaysia. Wing Tai shares gained 5 cents to close at 60 cents yesterday. The stock has lost 77.8 per cent so far this year.
- The Business Times, P8
Reit sponsors and their lucrative exit strategies
The difference between the Frasers and Macquarie-YTL deal is that in the latter, had an implication of a proposal to acquire 100 per cent of the Reit's units could be forthcoming. A statement between February and October to the effect that no offer for 100 per cent of the units was likely and that Macquarie was now looking to sell its own stake could have avoided this mix-up. There also appears to be a flaw in Singapore's Reit structure, which allows sponsors to charge high management fees for running the Reit and then obtain superior terms should they decide to exit their investments.
- The Business Times, P5
New brands at Orchard Central
Spanish brand Desigual's flagship store in Singapore will take up 3,369 square feet of space at the mall amongst other well-known labels like Tyan and Levi's Dockers. Also, a wide choice of new dining options including the first Ootoya branch in S’pore, known for its healthy, affordable cuisine. New to the food scene here is Duo Le Restaurant, a luxury restaurant chain from Shaanxi province in China, opening a 2,700 sq ft eatery. Far East is looking mainly for mid-range tenants because the mall is aimed at young working professionals. Orchard Central will also offer its adventure-seeking patrons a chance to climb and rappel off Singapore's first and only five- storey Ferrata Wall located inside the mall. Rents at the mall range from $20 per sq ft per month (psf pm) to more than $70 psf pm. Orchard Central will open in the first quarter of 2009.
- The Business Times, P12
Lean season for tourism
Singapore’s tourism scene continued its downward spiral last month - the fourth straight month. In fact, September was the worst month this year in terms of tourist arrivals: There were just 739,000 visitors, down 4.1 per cent from the same period last year. Average hotel room occupancy plunged to the lowest in two years, closing at 73 per cent, down 11.6 percentage points. The Singapore Tourism Board (STB) said it may not meet the $15.5 billion target it set for tourist spending. The STB attributed Singapore's decline to the 'challenging global economic environment and outlook for the tourism sector'.
- The Straits Times, A1
(also see The Business Times, P12, “Visitor arrivals fall a 4th straight month in Sept”)
Singapore sets up currency swap line with US Fed
Singapore has set up a deal with the United States Federal Reserve that will ensure banks here have sufficient access to US dollars if they need them. The Monetary Authority of Singapore said it has joined the central banks of Brazil, Mexico and Korea in establishing temporary swap lines with the Fed, which will provide US$30 billion (S$44 billion) of greenback liquidity in each country. The move is aimed at improving liquidity in global financial markets and easing potential difficulties in obtaining US dollars. The swap line, available until April 30 next year, is simply a 'precautionary measure' for now.
- The Straits Times, A8
It's official: US economy shrank in 3rd quarter
The US economy shrank at a 0.3 per cent annual rate in the third quarter, its sharpest contraction in seven years as consumers cut spending and businesses reduced investment in the face of rising fears that recession was setting in. It was slightly less than the 0.5per cent rate of reduction that Wall Street economists had forecast. Consumer spending fell at a 3.1 per cent rate in the third quarter. Disposable personal income dropped at an 8.7 per cent rate in the third quarter after rising 11.9 per cent in the second quarter. Businesses cut investments at a 1 per cent rate after boosting them 2.5 per cent in the second quarter. Prices were still rising relatively strongly in the third quarter, with the personal consumption expenditures index up at a 5.4 per cent annual rate.
- The Straits Times, A8
Fewer job ads in Q3 as firms cut back on hiring
The global banking crisis caused many companies in Asia's financial centres of Singapore and Hong Kong to cut back on their hiring efforts, said international recruitment firm Robert Walters, which released the third-quarter results of its Asia Job Index yesterday. In Singapore, the number of job advertisements fell for the second consecutive quarter, declining 10.2 per cent to 192,985 in July-to-September compared with 215,000 in the second quarter. But the survey found that demand for candidates in the IT, shipping, manufacturing and consumer products line has increased, as Singapore continues to become the regional centre for multinational banks and a hub for the IT sector.
- The Straits Times, P1
China, India will play major roles in next decade: Patten
Fast-developing China and India will continue to be key global players, but it is important not to assume that their economies will grow exponentially, said Mr Chris Patten, the last colonial governor of Hong Kong. For China, the issues include the widening gap between urban and rural income and standards of living, as well as the impact of climate change. In India, the challenges he identified include the need to improve its poor infrastructure and introduce labour reforms to provide enough jobs for its booming population.
- The Straits Times, A21
3 factors in South Korea's success
Senior Minister Goh Chok Tong spelt out the lessons that South Korea's success over the past decades. The three key ingredients for its success are exports, human capital and investments in infrastructure.
- The Straits Times, A21
Reservior in the City
The Marina Barrage keeps seawater out of Marina Bay and allows a freshwater reservoir to be formed in the city. PM Lee opens it this evening and, from tomorrow, Singaporean can enjoy a new place to dine beside the sea and take in the cityscape.
- The Straits Times, B4
Natura Loft
- Designer built DBSS project
- 3 towering blocks of 40 storeys each
- Bishan St 24
- 99-year leasehold
- Expected TOP: 31 Dec 2011
Eligible applicants can enjoy perks like:
- CPF housing grants
- No resale levy for 2nd time homebuyers
- Priority scheme like Married Child Priority Scheme (MCPS) and Third Child Priority Scheme (TCPS)
- Developer: Qingjian Realty
- Marketing agent: SLP International Property Consultants
- The Straits Times, A21 - advertisement