Thursday, August 25, 2011

CapitaMalls Asia

CapitaMalls Asia: +8.1% at $1.275 with 66m shares changing hands after 42.15m shares were traded in a married deal at $1.20. An analyst at a foreign brokerage says the block deal is probably the main reason for the gain, as it removes a share overhang; "I'm not too sure who the buyer is, but it seems like (substantial sh/h) the Captial Group Companies is selling.". YTD, The Capital Group has pared down its stake in CMA from just under 10% to 4.95% as of late July.
The analyst adds, other factors are also driving CMA's shares, such as news Wednesday that non-executive director Olivier Lim bought 370k CMA shares, raising his stake to 0.023% from 0.013% while CEO Lim Beng Chee recently bought 100k shares, raising his stake to 0.006%; "that's sending out quite a good signal and definitely positive". The analyst adds, CMA currently trades at about a 20% discount to book value, and has underperformed substantially year to date.

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