May 21, 2013 / 3:51 AM / in 5 years

STOCKS NEWS SINGAPORE-Keppel REIT falls after parent firm trims stake

Units of Keppel REIT dropped more than 2 percent after its parent, Keppel Corporation Ltd, said it would sell a 6.7 percent stake in the trust for S$280 million ($223 million).

The price fall came after Keppel REIT marched to a 5-1/2-year high of S$1.63 last week, rallying more than 20 percent so far this year and outperforming a 13 percent rise in the sector index.

An analyst at a foreign brokerage said the uncertainty of a new shareholder and concerns about further stake sales by Keppel Corp weighed on the trust.

Keppel REIT stood at S$1.57 per unit but still above the selling price of $1.555 for the 180 million units or 6.7 percent of the total issued units of the trust. It was the second most actively traded stock.

Brokerage UOB Kay Hian said it remained positive on Keppel REIT because of the trust’s strong office portfolio in Singapore, and retained its target price of S$1.64.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below