CDL may catch up with its soaring peers

[SINGAPORE] Back in February last year, the market was agog as a power struggle erupted at City Developments Ltd (CDL) following the controversial appointment of two independent directors. Less than a year on, the property group’s once-depressed shares are rising fast – and some analysts see “multiple tailwinds” lifting them much higher.

What is behind all the excitement? One obvious factor is that interest rates have been softening. Another is that new home sales rose strongly last year, and are expected to remain resilient this year.

Yet, the strongest driver of CDL’s share price might be the growing excitement in the market about its potential to unlock value and boost its profitability.