During a results briefing, CDL group CEO mulled whether CDL could bring in one or more financial partners for parts of Fuji Xerox Towers during its redevelopment. A partnership may depend on whether CDL could divest the Seoul Hilton. The selling price could be as high as $1 billion. Some hotels in Seoul are being redeveloped into other uses. Perhaps CDL could find a South Korean partner to redevelop the Seoul Hilton.
Whatever the case, its current share price may start to reflect the revaluation of Fuji Xerox Towers which won’t complete till 2025. Already, CDL is rising off its bottom, following a spate of positive divergences between price and smoothed RSI. Immediate, initial resistance is at $7.
The Straits Times Index held its own, although it closed nearer its low of the week, at 3,165. This still keeps the index above its 50- and 100-day moving averages at 3,148, and 3,158 respectively. Quarterly momentum peeped above its equilibrium line but was unable to sustain the move above it. ADX is very low, DIs are neutral, but the two-year momentum has strengthened, and that could keep the STI on an even keel. Support needs to stay tight, at 3,148 for the time being, and resistance/breakout remains at 3,178.
Photo: Street Directory
