AIMS AMP Capital Industrial REIT: Buy at 21c.

I am still in the queue to buy more of this REIT at 21c. With an annualised DPU of 2.04c, buying at 21c would give an attractive yield of 9.71%. Technically, 21c seems like a strong support as well, underpinned by the 200dMA.

I like to use the MFI as a measurement of demand and it is heartening to see that the uptrend is intact although attempts by the index to rise have been resisted several times at 50% since 21 Jan. An expansion in volume as price pushes higher would see the index move higher as well. When would this happen? Your guess is as good as mine. Bear in mind that the index could weaken to retest its trendline support as well and this could happen if volume or price weakens, or both.

Informed by FA, I would simply accumulate on weakness. This was something written by OCBC Research a couple of months ago:

The industrial sector typically lags the office sector by a few quarters. With the upbeat momentum in the office space, Industrial REITs stand to capitalise on the spillovers to business parks, high-tech and light industrial buildings. In terms of forward yields, Industrial REITs also trade at a premium of 70 basis points to the broader sector. We are bullish on the industrial sector recovery and now have an OVERWEIGHT rating for the Industrial REITs subsector. 

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AIMS AMP Capital Industrial REIT: 21c at XD.

CapitaMalls Asia: Testing resistance.

Although volume was lower than the previous session, price managed to overcome both resistance levels at $1.88 and $1.90. We could see the resistance provided by the descending 50dMA at $1.93 challenged next. Indeed, it could be argued at price is now at resistance provided by a trendline resistance at $1.92. Overcoming this resistance could see a retest of $1.97, the high of 17 Jan.

The RSI has broken out of 50% and is rising higher while the MFI is now testing 50% as resistance. So, initial observation suggests that although buying momentum is recovering, demand is not very strong. This is a fragile condition which could see things go either way. However, drawing a trendline support yields a very interesting picture. The MFI's uptrend is actually intact!

That $1.83 is now a support of some strength is indisputable. Market participants would remember it as the support which did not break. If this were to be tested once more, I am willing to bet that more buyers would emerge. So, although the longer term MAs are still in decline, the gently rising 20dMA tells a story of possible reversal. Although I am not adding to my long position, I am not a seller either.

Related post:
CapitaMalls Asia: Support at $1.83.