SINGAPORE (Nov 24): Singapore shares struggled to hold on to their morning gains as investors seemed content to take profit and focus on markets in Hong Kong and China, where stocks were in greater demand as a surprise rate cut by the Chinese central bank fuelled hopes that companies would start to increase spending and investment.

Market breadth has turned neutral from positive, with the Straits Times Index little changed at 3,344.57 at 12:30pm (0430 GMT). The benchmark had risen to 3,356 earlier.

Developers with operations in China rose on hopes that lower borrowing costs would trigger a pickup in home sales.

CapitaLand rose 2.4% to $3.35, Keppel Land gained 1.7% to $3.37, Ying Li International climbed 3.9% to 26.5 cents and Chiwayland International put on 2.4% to 21 cents.

The last time rates were cut, in 2012, the pickup in home sales lasted more than a year, CIMB analysts Johnson Hu and Linda Lin pointed out in a note.

"Home prices also started to rebound one to two quarters after the first interest rate reduction," they said. "We think home buyers will regard the rate cuts as an early signal for a potential market recovery in 2015, although the bull-run for the property market may not recur."

Forterra Trust gained 21% to $2.25 after Hong Kong developer Nan Fung International increased its takeover offer price for the property trust to $2.25 a share from $1.85 previously.