AIMS AMP Capital Industrial REIT: Dragoning.

The latest substantial shareholder of this REIT, Dragon Pacific Assets Limited, has increased its stake in the REIT again today. Its stake increased from 7.21 % To 11.39 % and it now owns 167,010,000 units.

I have not been able to find any information on Dragon Pacific Assets Limited and I am very curious as to its background.  I am also very curious regarding the identities of the sellers. The same reason has been given for the buy up as before: Acquisition for investment purposes.

The REIT closed at 23c, the upper end of its range and with it going XD tomorrow, I would be very surprised if this long term resistance could be overcome. Then again, never say never.

Noble: Downtrend.

Noble has been in a downtrend since the middle of March. This downtrend is intact.  With MFI forming lower highs, which suggests a lowering demand, and OBV dipping gradually, suggesting consistent distribution, the technical picture is rather negative.  The MACD is in negative territory and has just completed a bearish crossover with the signal line. Momentum is negative and it is not improving.

The counter is nowhere near oversold and price could sink lower if there is no catalyst strong enough to turn market sentiments positive. Price is currently resting on immediate support at  $1.66.  Immediate resistance is at $1.70 as provided by the 20dMA and candlestick resistance. 

Noble to sell coal mine stake to Gloucester, Australian says, for as much as A$300 million ($370 million).
Wednesday, 04 August 2010

© 2010 - The Edge Singapore

CapitaMalls Asia: Low volume sell down.

Price reached a low of $2.09 before closing at $2.11 which is the top of a mini double bottom formation. If $2.11 breaks, we could see a retest of the base of the double bottom at $2.02.  How likely is this?

Although price has moved down, volume has likewise reduced.  A low volume pull back. Good news. Second opinion? The OBV has turned down but it did not plunge which means no massive distributrion. Again, good news.

However, chart watchers would see the sell signal on the MACD histogram.  If this is confirmed in the next session, price is more likely than not going to move lower.

CapitaMalls Asia off 1.9%; 2Q fails to inspire. Earnings down 23.7% on year at $113.1 million as lower property valuation gains offset 31.9% rise in revenue.
Wednesday, 04 August 2010

© 2010 - The Edge Singapore

Blackstone is buying real estate in Japan.

I came across an article published by Bloomberg on 22 July, 2010, that Blackstone may buy Morgan Stanley's real estate assets in Japan.  Here are some salient points:

Prices for Tokyo office buildings have fallen as much as 50 percent from their 2007 peak, according to an estimate by CB Richard Ellis Group Inc.’s Japan subsidiary. Blackstone’s first purchase in the country, after opening a Tokyo operation three years ago, may suggest prices are set to climb, said Takashi Ishizawa, a real estate analyst at Mizuho Securities Co.

“The news confirms my view that property prices in Japan have reached bottom,” Ishizawa said in a telephone interview in Tokyo. “Now is the time to invest.”

Japan’s nationwide average land prices dropped 8 percent in 2009 from a year ago, the second straight annual decline, the National Tax Agency said in a report earlier this month.

The drop has attracted other buyers. Acquisitions by the country’s 38 publicly traded real estate investment trusts more than doubled in the first quarter to 229 billion yen from the same period last year, according to IB Research and Consulting Inc., a Tokyo-based research firm.

Japan’s listed real estate investment trusts have raised 195.5 billion yen in the first six months of this year, the highest since 2008, as they look to expand their portfolios, according to Mizuho Securities Co.

Read full article here.

Related post:

Buy Japanese real estate.