COE premiums end mostly higher at latest tender

[SINGAPORE] Certificates of entitlement (COE) ended mostly higher after a longer three-week break between the latest tender Wednesday (June 9) and the previous one on May 19.

COE for cars up to 1,600cc and 130bhp closed at S$48,510, up from S$41,801.

COE for cars above 1,600cc or 130bhp finished at S$60,109, up from S$58,089.

Open COE, which can be used for any vehicle type except motorcycles, but which ends up mostly for bigger cars ended at S$61,112, down from S$62,000.

Commercial vehicle COE finished at S$37,002, down from S$41,701. Motorcycle premium closed at S$8,703, up from S$8,701.

COE tenders are usually two weeks apart. But occasionally, there are three-week gaps because of changing number of weeks in a month.

A longer break gives motor dealers more time to collect orders. More orders in hand usually translate to a higher number of bids as well as more competitive bids.

Market observers point out that Open COE had ended lower, which is a reflection of weaker sentiment ahead. This means premiums are more likely to fall in the coming tenders than they are to rise.

THE STRAITS TIMES

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