End of Suntec REIT stock rally?
From $2.25 in January 2018 to $1.66 in June 2018, Suntec REIT stock crashed in bizarre fashion and in the process, roasted many investors alive within the span of six months. The incredible rally of Suntec REIT stock started in 2016 and gained pace rapidly in 2017 on the back of market rumours of potential takeover by sponsor, ARA Asset Management. What on earth has happened? Is the sky falling for Suntec REIT stock or will it rise like phoenix from the ashes?
Market speculation on Suntec REIT being privatized peaked in late December 2017, a period of time when a slew of local homegrown companies were exiting Singapore Exchange bourse. Big names like Eu Yan Seng, Tiger Airways, SMRT, Popular Holdings and Keppel Land were just a few of many local stocks that had been delisted from SGX in the past two years, wiping off billions of liquidity from the stock bourse.
At a point of time, Suntec REIT seemed destined to be the next counter to be privatized. As a result, this sparked a frenzy rally in Suntec REIT stock price.
Well, I suppose in the stock market, the old saying of “Man proposes, God disposes” still holds true.
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