Wilmar (F34.SG) drops in afternoon trade, closes down 2.3% at $5.44, compared with around $5.55 at midday, with volume picking up to almost 16 million shares.

A trader at a local brokerage says he’s heard of no news that could be driving the selling, while an analyst at a local house says he’s heard speculation of poor margins at Wilmar’s China consumer pack business, which will likely weigh 4Q results. 

Another negative factor is a report Sunday in the Chongqing Evening newspaper, citing people familiar with the order, that China will expand its property purchase limits to more cities, mainly second- and third-tier cities to slow surging real estate prices.

That would hurt Wilmar’s fledging property JVs in Yingkou City, Liaoning province. The negative impact of these measures was highlighted by a lunchtime note from Kim Eng today; “It appears that the breadth and depth of the measures will soon guarantee that no property developer can run away with the fat profits as in the heydays of the property boom.” Wilmar was not immediately available for comment.