CapitaMalls Asia: Japanese properties are safe.

Quite a few people I know have their eyes on CapitaMalls Asia and they are hoping that it would go closer to its NAV/share to buy some or more shares of the company. Its NAV/share is currently $1.50.

There is some concern amongst investors that the company's Japanese properties might have suffered from the quake. The company has released a statement today reassuring investors "the properties comply with strict seismic safety standards and have not suffered any material structural damage".

"CMA’s investments in Japan, which as at Dec. 31, 2010, accounted for approximately 2% of its total assets, are primarily held through its 26.29% stake in the CapitaRetail Japan Fund which owns seven retail properties in Tokyo, Osaka, Hokkaido and Kobe."

Technically, even though price touched a low of $1.57 today on high volume. The volume is relatively lower than 28 Feb when price touched a low of $1.69. This suggests that the weakness is from a lack of buyers and not from an abundance of sellers. I would also look out for positive divergence in the making on the daily chart. The positive divergence on the weekly chart between lower price and higher MFI is still quite obvious.

CapitaMalls Asia at all-time low; the Japanese properties it has investments in “were not materially affected by the earthquake and tsunami which occurred on 11 March 2011.” CMA says the properties comply with strict seismic safety standards and have not suffered any material structural damage, while operations at the properties have resumed.
Tuesday, 15 March 2011

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