Sell-down overdue as market looks for real signs of recovery
By
Joyce Teo
The sell-down follows a sharp rally in recent weeks and is viewed as overdue given that the stocks have looked overpriced. -- PHOTO: THE BUSINESS TIMES
PROPERTY stocks plummeted on Monday as investors - afraid that the party is over for now - headed for the exit.
The sell-down follows a sharp rally in recent weeks and is viewed as overdue given that the stocks have looked overpriced, said a fund manager.
Shares of property heavyweight City Developments (CDL) closed 6.7 per cent lower at $8.95 on a volume of 7.08 million shares. It is now 10.5 per cent below last week's high, but still a long way above its March lows.
CapitaLand closed 3.6 per cent behind at $3.71 on a volume of nearly 42 million shares. This is down from last week's high of $4.01.
And developer Keppel Land slipped 7.8 per cent to close at $2.34 on a volume of 15.4 million shares. It is 16 per cent lower than last week's high of $2.78.
In an AmFraser Securities report yesterday, Mr Najeeb Jarhom noted that the three stocks had recorded 'stunning' triple-digit surges since their March lows.
Keppel Land has led the pack with a 328 per cent jump from 70 cents to $3, despite being booted out of the Straits Times Index recently.
The report added that the stock should trade between $2.30 and $2.90.
CapitaLand is expected to trade within a range of $3.50 and $4.10.
As for CDL, its shares should trade between $8.70 and $10, it said.
Read the full story in Tuesday's edition of The Straits Times.
