Excerpts from Deutsche Bank report

Analysts: Joy Wang & Chien-Fie Man

Where are stocks heading?

Despite the strong performance of the physical residential market, Singapore developers have underperformed over the last month.

We believe that the 
divergence in performance reflects
1) increased concerns regarding potential 
government measures in response to rapid ASP growth;
2) increased concerns 
about uncertainty on the interest rate outlook and
3) lowered risk tolerance as a 
result of ongoing macro events.

TheNavianThe recently-launched Navian: A freehold six-storey condo in Jalan Eunos by Roxy-Pacific Holdings. Artist's illustrationWhile we think investors could remain uncertain 
on the developers in the near term, we see a lengthening of the current virtual cycle for the Singapore residential property market.

We also believe that policy 
measures are unlikely in the near term, especially with HDB re-sale pricing yet to bottom.

Indeed, with the bulk of the en-bloc money yet to be released and 
existing supply yet to be demolished, we are probably just at the beginning of this cycle.

We reiterate our positive stance on the developers City Developments 
and UOL Group, our top picks.

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Counter NameLastChange
AEM Holdings2.740-0.040
Avi-Tech Electronics0.2650.010
Best World1.780-0.030
Broadway Ind0.0870.003
China Sunsine0.380-0.010
Delfi Limited1.040-0.010
Food Empire1.410-0.040
Fortress Minerals0.250-0.010
Geo Energy Res0.410-0.005
GSS Energy0.029-
Hong Leong Finance2.5600.020
Hongkong Land (USD)3.3300.070
ISDN Holdings0.345-
IX Biopharma0.039-0.004
Jiutian Chemical0.026-
KSH Holdings0.2450.005
Leader Env0.053-
Medtecs Intl0.139-0.002
Nordic Group0.350-
Oxley Holdings0.092-0.001
REX International0.123-0.004
Sinostar PEC0.140-
Southern Alliance Mining0.585-
Straco Corp.0.515-
Sunpower Group0.210-
The Trendlines0.085-0.001
Totm Technologies0.025-0.002
Uni-Asia Group0.875-0.025
Wilmar Intl3.2600.020
Yangzijiang Shipbldg1.670-0.020

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