City Dev: Re-inclusion into FTSE Real Estate index to garner buying interest
Maybank KE highlighted that more buying interest may return for City Dev, as the property developer will be included back into the FTSE EPRA/NAREIT Global Real Estate Index this month.
As a recap, City Dev plunged 25% in the six months following an announcement on 4 Jun ’15 that it will be deleted from this index.
Nevertheless, global index provider FTSE announced yesterday that the stock will be re-included into the index, after its latest quarterly review, with the changes taking place on 20 Jun.
Consequently, Maybank KE now believes that the impending re-inclusion could drive a reversal of fund flows experienced last year, and expects positive interest in the coming months.
The house reiterates its Buy call on City Dev with a TP of $9.82.
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