EHT dives 15.5% on Queen Mary lease worries

Singapore

STAPLED securities of Eagle Hospitality Trust (EHT) sank on Friday, despite assurance from the property trust that its sponsor, Urban Commons (UC), is not at risk of losing its lease on a key asset in California.

The counter fell 15.5 per cent, or 10 US cents, to close at 54.5 cents. It was one of the most actively traded, with 32.8 million stapled securities changing hands.

The sharp selldown prompted some traders to describe the counter as oversold. "At its trading price of 55.5 US cents, the relative strength index (RSI) is around 11.5, which suggests EHT units are oversold," Ernest Lim, a remisier, said. The RSI is…