CDL pops on news of South Beach stake sale; SIA Engineering hits 5-year high

Analysts eyeing firms that may gain from capital infusion into local stocks by year end

- Kang Wan Chern

City Developments Limited (CDL) popped last week, after it announced it will sell its 50.1 percent stake in the South Beach mixed project to its Malaysian partner's IOI Properties Group for about $834.2 million.

The transaction is expected to result in a gain on disposal of about $465 million for the financial year ending Dec 31, which will be used to reduce bank borrowings and lower its debt, CDL said on June 4.

The company had said in 2024 that it aimed to divest $1 billion in assets, and has announced about $600 million in divestments so far.

CDL's share price, which had declined following a public dispute between executive chairman Kwek Leng Beng and his son, chief executive Sherman Kwek, over control of the company's board, rose 8.5 percent over the week to close at $5.25 on June 6.

SIA Engineering hit a five-year high of $2.98 on June 6, outperforming its average target price of $2.71 as investors ploughed into the stock.

The aircraft maintenance provider has been a favourite stock pick among analysts, who have begun identifying companies that could benefit from an expected capital infusion into local stocks before the end of the year.

As part of an effort to revive the stock market, the Monetary Authority of Singapore will be allocating $5 billion in seed capital to Singapore-based funds for investing in local stocks, and expects to shortlist suitable investment strategies by end-September.

Analysts reckon the funds will likely be deployed before the end of 2025.

SIA Engineering rose 8.5 percent through the week, and closed on June 6 at $2.94.

GREAT EASTERN TO ADDRESS SHARE TRADING SUSPENSION