Consumer, property in play post-Budget

IT was a subdued day for the region, with the Straits Times Index (STI) falling 11.35 points, or 0.33 per cent, to close at 3,476.53. But as usual, a flatlining index belied intense volatility on the sidelines.

Consumer and property stocks were in play after Budget announcements on a higher Goods and Services Tax (GST) and Buyers' Stamp Duty (BSD). There was some cheer when an expected GST whammy to the consumer will not be materialising as fast. However, an unexpectedly higher BSD dealt a blow to the real estate sector.

Singapore residential developers like UOL (-3.3 per cent) and City Developments (-3 per cent) fell after it was announced that the top marginal BSD rate, for properties exceeding S$1 million, will go up by 1 percentage point.