There is a new substantial shareholder for this REIT: Dragon Pacific Assets Limited.
No. of Shares held before the change: 38,985,000
No. of Shares which are subject of this notice: 66,693,000
No. of Shares held after the change: 105,678,000
As a percentage of issued share capital: 7.21%
Reason given: Acquisition for investment purposes.
Many are probably wondering who are the sellers as this is probably a married deal. The volume is really very high. Fundamentally, more substantial shareholders with a longer term investment horizon is good for the REIT. They would give a stronger floor to the unit price and, therefore, a firmer platform for possible future price appreciation.
Technically, the big sell down today at 22.5c sent the MFI crashing into the oversold region. The MFI has also formed a lower high. What we see now is a negative divergence with price which has moved up to test the long term resistance of 23c in recent sessions. 23c remains a formidable resistance.
OBV dropped a notch and the MACD seems ready to form a bearish crossover with the signal line. With XD date approaching in another 3 days, a pull back in the unit price of this REIT is probable. In such an instance, expect initial support at 22c and a stronger support at 21.5c, the midpoint of the trading range (20c to 23c). Good luck to fellow unitholders.
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