City Developments Ltd (CDL) saw its stock plummet 3.13% in early trading on Wednesday, as investors reacted to the company's proposed share buyback plan and broader market weakness. The move comes as Singapore's property developer seeks shareholders' approval to repurchase up to 10% of its ordinary shares and an additional 10% of its preference shares.

The share buyback proposal, which will be put to vote at the company's annual general meeting on April 23, could potentially increase the Kwek family's controlling stake in CDL from 49.29% to 55.51%. This move is seen as an attempt to stabilize the company following a recent boardroom tussle between executive chairman Kwek Leng Beng and his son Sherman Kwek. However, the market's negative reaction suggests that investors may be concerned about the implications of the increased family control and the use of company resources for share repurchases.

The stock's decline also comes amid a broader market downturn, with the Straits Times Index falling 1.7% on Wednesday. Singapore's Prime Minister Lawrence Wong has warned that recent US tariffs will significantly impact the country's economic growth, contributing to the pessimistic market sentiment. As global growth weakens and external demand for Singapore's goods and services is expected to fall, outward-oriented sectors like real estate may face increased pressure in the coming months.