CityDev Falls On Credit Suisse Downgrade

Source : The Business Times, May 6, 2008

Shares of City Developments (CityDev) extended losses for a second day after Credit Suisse downgraded its investment rating to 'underperform'.

Southeast Asia's second-largest property developer fell as much as 3.4 per cent to an intraday low of $11.92 (US$8.76) with over 1.2 million shares traded. CityDev had lost 1.3 per cent on Monday.

'Being a proxy to the Singapore property market we believe it (CityDev) is vulnerable to further negative news flow within the sector,' said Credit Suisse analyst Tricia Song, who set a target price of $10.20 for the firm.

The US weakness is still not completely factored in, so except for rental prices, it will still take some time for the property markets here to take off again,' a dealer said.