Hot stock: ComfortDelGro's shares surge 2.4%

Leslie Yee
Published Thu, Mar 25, 2021 · 01:25 PM

SHARES of ComfortDelGro rose 2.4 per cent to close at S$1.69 on Thursday, after hitting an intra-day high of S$1.71.

A total of 21.6 million shares with a value of S$36.7 million changed hands.

The stock was reacting positively to the government's announcement on Wednesday evening that more can return to the workplace.

From April 5, the proportion of employees allowed to be at the workplace at any one time will increase from the current 50 per cent, to 75 per cent. The cap on the time an employee spends at the workplace will also be lifted.

Events such as marriage solemnisations, wedding receptions and live performances at designated venues can also enjoy higher capacity limits.

RHB has ComfortDelgro among its top buy recommendations. RHB expects the group's Singapore public transport and taxi businesses to support earnings rebound amid normalisation of operations in 2021.

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Lim & Tan said in a note that with a bigger population base allowed to return to work and also to attend group events, transport operators such as ComfortDelGro and SBS Transit would see better passenger loads going forward.

The brokerage also sees retail and office landlords such as CapitaLand Integrated Commercial Trust benefiting from higher customer traffic.

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