Hot stock: CDL jumps more than 3% amid active trading

SHARES of City Developments Limited (CDL) jumped as much as 3.39 per cent to reach an intraday high of S$7.92 as at 1.43pm on Monday, amid active trading. The counter had closed on Friday at S$7.66.

As at 4.31pm, the counter was trading at S$7.90, up 3.13 per cent or S$0.24. About 3.36 million shares changed hands.

No married deals were recorded, according to Shareinvestor data.

The price movement comes just after CapitaLand on Monday morning announced, together with CLA Real Estate Holdings (CLA), a scheme of arrangement to effect the proposed corporate restructuring in which the group will be privatising its real estate development business.

CLA is an indirect wholly-owned subsidiary of Temasek, and is the largest shareholder of CapitaLand with a 52 per cent stake.

Under the proposed restructuring, CapitaLand's shareholders are to hold shares in CapitaLand Investment Management (CLIM) - which is to be listed on the Singapore Exchange (SGX) by way of introduction. CLIM will own the investment management platforms and lodging business of CapitaLand.

Both CDL and CapitaLand - leading property development groups listed on the SGX - had earlier reported dismal results for their respective FY2020s but emphasised that they were in good shape to seize new opportunities, and urged investors to focus on the future potential of their businesses.