Singapore shares tread water; CapitaMall Trust at 1-month peak

PHOTO: Singapore shares tread water; CapitaMall Trust at 1-month peak

SINGAPORE - Singapore shares fell on Thursday from a one-month high hit in the previous session, while top performer CapitaMall Trust rose to its highest in more than a month after reporting a rise in distributable income for the third quarter.

The benchmark Straits Times Index eased 0.1 per cent to 3,201.89 by 0425 GMT, in line with a 0.2 per cent dip in MSCI's broadest index of Asia-Pacific shares outside Japan on concerns that China may start to tighten liquidity.

CapitaMall Trust, which owns retail properties primarily in Singapore, said its distributable income rose 9.7 per cent in the quarter ended Sept. 30 from a year earlier, and distribution per unit (DPU) gained 5.8 per cent to 2.56 Singapore cents.

More asset enhancement initiatives (AEIs) at one of its malls in Singapore are expected to raise DPU in the 2015 financial year, said Donald Chua, an analyst at CIMB.

"AEIs are still CMT's key NPI (net property income) driver as retail sales and shopper traffic growth remain flat," Chua said in a research note. "We believe that positive surprises in retail sales and accretive acquisitions are needed to re-rate the stock from current levels."

CIMB has a neutral call on the stock with a target price of $2.12.

CapitaMall Trust's shares rose more than 1 per cent to $2.03, a level unseen since Sept. 19.