CapitaMalls Asia: Strong uptrend emerging.

Despite strong buy calls from research houses, this counter's share price suffered from a prolonged period of weakness. However, recently, a strong uptrend seemed to be emerging for this counter. Refer to the orange color trendline support. Is this a reversal which would propel its share price much higher?

Volume in today's session was much lower than the previous day's but price still managed to close higher at $1.88 resistance, touching a high of $1.89 in the day. Rising on low volume is not a good sign usually but if we look at the bigger picture, the overall trend should be given more prominence. Indeed, the ADX seems to be turning up as the +DIs are rising. This is something we have not seen in a while. It suggests that a nascent uptrend could be gaining strength.

The MACD is rising higher in positive territory. The other momentum oscillators continue to rise as well. There is demand, there is accumulation and there is positive price momentum. The strength is impressive and I would be accumulating on weakness. I still have near term targets of $1.95 and $2.00 for this counter where price would meet with resistance. At what price would I accumulate? Immediate support is at $1.83.

Related post:
CapitaMalls Asia: Testing $1.88 resistance.

Higher rents to benefit industrial properties S-REITs.

In the last one month, I bought more units in industrial properties S-REITs.

1. I became an investor in Cambridge Industrial Trust again. Read blog post here.

2. I bought more units of AIMS AMP Capital Industrial REIT. See latest blog post here.

3. I became an investor in Cache Logistics Trust. Read blog post here.

4. I became an investor in Sabana REIT too. Read blog post here.

I believe that all these REITs are fundamentally strong and if we are investing for income, these could be very rewarding in the next two years. Distribution yields range from 8.15% for Cache Logistics Trust to 9.76% for AIMS AMP Capital Industrial REIT at current prices. Attractive? Quite.

DTZ Research said that rents for industrial space in Singapore are rising. Although average rent grew 3% quarter on quarter, current average rent is still 17.1% below the peak of 2008.


"DTZ added that industrial rents are anticipated to continue to increase. That is because the annual average potential supply of 7.5 million square feet between 2011 and 2013 is significantly lower than the historical 10-year average demand of 9.3 million square feet." CNA, 07 April 2011.


If we are trying to beat inflation and protect our wealth from shrinking, industrial properties S-REITs are definitely worth considering. I have felt this way for more than a year and I continue to believe in their fundamentals.