STOCKS NEWS SINGAPORE-CityDev drops to near 6-week low

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06-08-2013 12:42:11
STOCKS NEWS SINGAPORE-CityDev drops to near 6-week low; index eases

City Developments Ltd's shares fell to their lowest in
nearly six weeks, shrugging off a 48 percent surge in quarterly
net profit on disposals of some non-core assets.
The financial sectoral index <.FTFSTAS8000>, of which
CityDev is a component, was down 1.2 percent and weighed on
sentiment.
The property and hotel company dropped as much as 1.9
percent to S$10.5, before recovering to S$10.56. The Strait
Times Index <.FTSTI> fell 0.9 percent to 3,213.48, while Asian
shares outside Japan measured by MSCI Asia-Pacific ex-Japan
index <.MIAPJ0000PUS> eased 0.7 percent.
CityDev said its property rental segment was the main
contributor to second-quarter earnings due to the gains from
non-core asset sales, while the hotel business suffered from
grown capacity in Singapore and uncertain economic conditions in
Asia. [ID:nL4N0G647R]
The company said it expected to remain profitable for the
year, but warned about challenges in the second half due to
measures taken by the government to reign in speculation in the
property market.
"Transaction volume for private residential sales is
beginning to be more measured and prices in general, are
expected to be moderated for the mass market segment, due to the
tightening of bank borrowings," it said in its earnings report.
Yongnam Holdings Ltd , a construction company
bidding for airport projects in Myanmar, fell to a four-month
low of S$0.28 after it said second-quarter net profit fell 28.6
percent.

(Reporting by Rujun Shen; Editing by Subhranshu Sahu)
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