PropNex pointed to a solid outlook for Singapore’s property market as a possible explanation for the around 16 percent surge in its shares this week which spurred a query from SGX.
The shares closed Thursday at S$2.10, up 5.53 percent from Wednesday’s close in high volume, and up around 16 percent from Friday’s close at S$1.81.
PropNex noted Singapore’s Ministry of Trade and Industry this week released advanced estimates that the city-state’s gross domestic product (GDP) grew 14.3 percent on-year in the second quarter, on improvement in the manufacturing, construction and services sectors.
In addition, property transaction volumes were strong in the first half of this year, and property prices were resilient, even as the growth in overall private home prices slowed on-quarter in the second quarter, the response to SGX’s query said.
PropNex also pointed to comments from Monetary Authority of Singapore’s Managing Director Ravi Menon that the property market was not overheated as likely dispelling some concerns that fresh property cooling measures might be introduced. Menon’s comments that the city-state’s economic growth could be higher than expected likely also raised property-market optimism, PropNex said.
“As Singapore’s largest listed real estate agency, PropNex Limited is a direct beneficiary of the resilient Singapore property market and the positive economic outlook,” the statement said.
PropNex noted it wasn’t aware of any unannounced information specifically on the company that could have driven the surge in the shares.