An analyst has blamed the MSCI GIMI (Global Investable Market Indexes) and the MSCI ACWI (All Country World Indexes) rebalancing for the declines in both CDL and UOL. UOL was removed from the MSCI Singapore Index as at end-February this year. CDL was removed on May 31.
Developers have been sold down — in particular two seemingly blue-chip names, City Developments (CDL) and UOL Group. They aren’t the only ones. Hong Fok is testing two-year lows. Ho Bee Land (SGX:H13
) appears poised to break below the confluence of its 100- and 200-day moving averages at $1.81. Its last done price as at June 12 was $1.84.
CDL and Ho Bee have stretched balance sheets. But UOL has a strong balance sheet. Yet, it is being sold down alongside developers with weaker balance sheets.
