Second-tier property stocks buoyed by privatisation speculation

Wing Tai, Ho Bee, and Wheelock all registered gains.

A number of second-tier property players registered share price gains yesterday, as speculation remains rife that these names might get privatised soon.

According to Nicholas Teo of CMC Markets, Wing Tai, Ho Bee and Wheelock Properties yesterday registered gains of almost 10%, 4% and 3% respectively, although overall trading on the SGX was generally muted.

“Local property names on the SGX, however, stood out as traders in attendance continued to chase the privatisation story. Speculation has been rife, especially after a series of privatisation over the last few years, beginning with SG Global, Hotel Properties and lately Keppel Land. With some of these stocks trading at deep discounts to book, there is speculation that major shareholders may come in to take these names private, or be faced with potential penalties for unsold stock under the QC rule,” Teo noted.