|
CapitaMall down on CEO change,
market woes
Posted by luxuryasiahome on September 18, 2008
CapitaMall Trust, Singapore’s biggest real estate investment
trust, fell 13 per cent to a two-year low on Thursday, as news
of its CEO’s departure combined with wider market fears weigh on
its shares.
CapitaMall announced on Wednesday that Pua Seck Guan is
resigning as CEO ‘to pursue his personal interests’, and will be
replaced by Lim Beng Chee. The trust’s parent CapitaLand said Mr
Pua will also step down as CEO of its retail arm.
‘CapitaMall Trust has historically traded at a valuation premium
to peers, largely attributable to Mr Pua’s strong track record
of delivering shareholder returns,’ said Merrill Lynch analyst
Melinda Baxter in a note to clients.
‘We expect the market to react negatively to this news,’ said Ms
Baxter, cutting the bank’s target price for the stock to $3.00 (US$2.09)
per share from $3.66, but maintained a ‘buy’ recommendation.
A dealer with a local brokerage said CapitaMall shares were also
being beatened down as widespread fears stemming from the US
financial turmoil led investors to sell shares.
‘This is market-driven. Investors on the whole are selling off
shares on the market today,’ the dealer said.
At 0200 GMT, CapitaMall Trust was trading at $2.43 with 4.6
million shares changing hands, underperforming the Singapore
Reit index which was down 6.1 per cent.
CapitaLand lost 7 per cent with 5.5 million shares traded.
The Straits Times Index was down 3.5 per cent.
|
