AIMS AMP Capital Industrial REIT: New SS.

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.

CapitaMalls Asia: Sell on news?

The market seems unimpressed with CapitaMalls Asia's results.  Price tried moving higher, touched a high of $2.18 before declining to close unchanged at $2.16. The MACD is back in positive territory which suggests that we are once again seeing positive momentum in price movement.

Although the rising MFI suggests a strong demand, the OBV has turned flat in the last two sessions which suggests that neither accumulators nor distributors have the upper hand. Therefore, the lower volumes in the last two sessions as the price tried to move higher should be taken as a strong cautionary note.

Having said all these, it is worthwhile noting that price has closed above the 100dMA again even though it's a black candle day.  If the 100dMA is confirmed as the new support, price could move higher.

CapitaMalls Asia achieves 1H 2010 net profit of $209.8m
Tuesday, 03 August 2010

© 2010 - The Edge Singapore

Genting SP: Bearish engulfing candle.

Genting SP spots a bearish engulfing candle today.  This is a big black candle that envelopes the entire candle of the previous day.  This is extremely bearish as it indicates that price started the day higher but met with resistance and turned down to close lower than the previous day's low. That this was accompanied by high volume makes it more ominous. The bearish situation is backed up by a sell signal on the MACD histogram and the MACD has turned down towards the signal line.

However, even with the massive sell down today, the uptrend is still intact.  Look at the support line I labelled "uptrend support 2".  This uptrend approximates the position of the 20dMA.  Could price bounce off this support in the next session or continue to decline to test the many times tested resistance turned support at $1.20?  Although the MFI has turned down, the uptrend is intact.  OBV has turned down which indicates some distribution took place today.

Genting Singapore down 3.9%; $1.20 support. Traders attribute selloff to market chatter of company planning share placement. Gaming group declined to comment when contacted.
Tuesday, 03 August 2010

© 2010 - The Edge Singapore

Golden Agriculture: Sell down,

In my post on Golden Agriculture yesterday, I said that "Although volume expanded today, a case could be made that we are seeing a negative divergence with price.  Just keep this thought handy."

Golden Agriculture started the day at 60c to hit a high of 62c before retreating to close at 58.5c on high volume.  This is where we find the downtrend resistance which was overcome yesterday.

OBV has turned down which confirms that distribution is taking place.  However, the MFI is now higher than the previous high.  This hints that demand continues to be strong and there are buyers waiting to collect at lower prices.

Could 58.5c now serve as support?  It could but we need confirmation.  A stronger support is at 55.5c, as provided by the 100dMA.

Related post:
Golden Agriculture: Downtrend broken.