CMT duly responded to the SGX query that it did not know of any reason(s) for yesterday’s $1.40 or 87% surge in its market price to $3.00, the highest since Aug 7th ’08. There was therefore no request for a Trading Halt.

2 mln CMT units were traded at $3 just after 5 pm yesterday, representing just over two thirds of total volume traded, which were all done at $1.59 - $1.61.

If it were CapitaLand (C-Land) as the buyer, one would expect them to announce quickly that it was behind the purchase, given the sensitivity of the matter. (Note that CMT’s reply to the SGX was also reported by C-Land to the Exchange, in its capacity as the controlling unit-holder of CMT.)

And if not, it would be a giant leap of faith for anyone to pay 26% premium to CMT’s latest book NTA of $2.39, when the retail Reit was going for >30% discount for weeks!

One recalls an almost similar situation within the C- Land stable on Nov 6th, when Ascott Residence’s (ART) market price shot up 9 cents or 15% (way below CMT’s 87% surge) to 66.5 cents on market speculation C-Land was going to privatize it. Nothing has since materialized however, and ART was down 29% to 47.5 cents two weeks later on Nov 20th. ART ended yesterday at 57.5 cents, which was the closing price on Nov 5th.

We had recently suggested ART,CapitaCommercial Trust, K-Reit and CDL Hospitality as possible privatization candidates by their respective parents - C-Land, Keppel Land and City Developments, given they are all trading at sizeable discount to NAV, albeit all due for write- downs.