Shares in CapitaMalls Asia Ltd (CMA) gained 2.8 percent, supported by positive broker comments after the shopping mall developer reported a 41 percent jump in quarterly operating profit after tax and minority interests.
CIMB highlighted an improvement in CMA’s operating margins and firm rents at the company’s existing and new malls. “We expect further operational improvements to drive its share price,” it said.
CMA rose in a steady Singapore stock market, with Singapore Exchange Ltd and Genting Singapore Ltd figuring among other gainers. Market focus will be on SPH REIT as it begins trading later on Wednesday after pricing its S$504 million offering at the top of its indicative range.
CMA shares have taken a beating over the past few months on worries of a credit crunch in China, a country that accounted for 44 percent of its revenue last year. “CMA has been aggressive in acquisitions, but is now focusing more on execution and improving yields,” CIMB said.