City Developments should explain how it will manage its buybacks as it grows its business

The group may face the dilemma of whether to use divestment proceeds to repurchase its depressed shares or acquire exciting new assets

Ben Paul

Published Mon, Mar 18, 2024 · 05:00 AM

City Developments

WHEN City Developments Limited (CDL) tumbled below S$6.00 last month, I thought it might be time to buy the stock.

The company’s board and management evidently felt the same way. On Mar 8, CDL said it had initiated a share buyback programme.

“Global equities have been hit by macroeconomic headwinds, resulting in depressed valuations. Our share buyback programme demonstrates our confidence in CDL’s strong fundamentals and growth potential,” said the company’s chief executive Sherman Kwek.