Property counters shine
Posted by luxuryasiahome on January 5, 2009
DESPITE news that private home prices dropped by a sharp 5.7 per cent last quarter, shares of property developers shone on Friday which helped the related warrants to post strong gains.
CapitaLand and City Developments rallied on 2009’s first day of trading. CapitaLand hit an intra-day high of $3.30 on Friday, eventually closing 16 cents higher at $3.27 with 8.3 million shares traded. City Developments was also 3.6 per cent higher at $6.60 with two million shares traded.
Analysts believe there are still buyers out there and some expressed confidence that developers will likely weather the storm.
A warrant issued by Macquarie Securities on CapitaLand rose one cent to six cents with 44,000 units traded. It has an exercise price of $3.90 and a conversion ratio of one share to three warrants.
Another warrant issued by Macquarie on CapitaLand gained nearly 10 per cent or three cents to close at 34 cents, with 4.1 million units changing hands. It has an exercise price of $2.90 with a conversion ratio of one share to two warrants.
Oil prices rose on the first day of trading of the new year, with crude briefly touching US$46 a barrel after fog delayed Gulf Coast tankers. This may have reignited buying interest in rig builders, whose shares have slumped in recent months.
A warrant issued by Macquarie on Keppel Corp surged nearly 10 per cent to close 1.5 cents higher at 17.5 cents with 935,000 units traded. The warrant offers an exercise price of $4.90 and a conversion ratio of one share to four warrants.
The rise was in line with the Keppel counter which rose 18 cents to $4.51 with 4.8 million shares traded.
Source : Straits Times – 5 Jan 2009
