Capitaland Shorterm Bulish

Capitaland=$3.41 (Short term bulish divergent) but...... see the update below......


Capitaland=$3.49 (Take profit now at trendline resistance)

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CapitaCommercial Trust - Bullish piercing pattern with tweezers bottom suggests likely near term rebound

CapitaCommercial Trust may see more upside in the days ahead following the double formation of a tweezers bottom and the bullish piercing pattern at the 1.5-month uptrend line on heavy volume.

With both the RSI and MACD indicators’ respective 3-month uptrend lines still intact, coupled with the golden cross of the 50-day MA above the 200-day MA a few sessions ago, they seem to suggest that the upside momentum is still going strong.

We expect the rebound to meet an initial resistance at $1.00 (2-year downtrend line), breaking which, the next key resistance is at $1.09 (support-turned-resistance level in Jan ‘08)

Immediate support is meanwhile pegged at $0.87 (resistance-turned-support level), ahead of $0.80 (3-month uptrend line).

CCT - Trading Buy, Target $1.00

CCT rights closed at $0.295 yesterday, while the mother shares (CCT) closed at $0.91. Imputing the exercise price of $0.59 for each rights share, there is a 3% implied discount by buying the rights and converting to CCT shares.

We are recommending a Trading Buy call on CCT, with Target Price at $1.00.Our preferred mode of entry is via the rights shares, due to the gearing effect. While we are cautious on the office sector due to the impending supply (~10m sq ft) coming onstream over 2009-2012, a 14% increase in the existing office stock at a time of negative office space demand, the investment case on CCT rests on the following:

Post-rights issue, the balance sheet has strengthened with gearing brought down from 43% to 30%, enabling the REIT to better withstand further decline in rentals and capital value.

Company has a portfolio of prime office assets with a good spread of anchor tenants pre-committed at low rental rates and unlikely to leave.

P/Book of 0.6x is in line with other office landlords (ie Singapore Land), despite CCT having written down portfolio value by 10% in the May revaluation exercise. Office landlords have been relative laggards in the market rally.

Stock is off 10% in the past 5 trading sessions, and currently trades at only 10% premium to theoretical ex-rights price of $0.825, compared with other Temasek/Capitaland-sponsored rights issues which have performed much more handsomely with premium of 20% or more.

CapitaRChina take some profit

CapitaRChina = $1.22 (Reached 2nd Target..take some profit)

CapitaRChina going higher?

CapitaRChina=$1.10 (Going for the second target)

CapitaRChina go to 0.9?

CapitaRChina=$0.80 (To recover towards SAR at $0.88)

CapitaMall retest 1.30?

CapitaMall=$1.24 (Price crossed yellowline at $1.23....could retest $1.30)

Capitaland - Too strong a resistance to overcome for now

- After a rally of 84% over the last 1.5 months, CapitaLand may be headingfor a pullback in the coming weeks; this as the recent price action hasformed a dark cloud cover (bearish pattern) just below its strong 1-yeardowntrend resistance line.

- Technical indicators (Force Index, RSI and MACD Histogram) have beendisplaying bearish divergence to the price action over the last few weeks;coupled with the OBV indicator falling below its 1-month uptrend line, webelieve that the recent rally has weakened considerably.

- Hence we expect a pullback to the immediate support at around $2.66 (1-month uptrend line, also minor gap in mid Apr ’09 and the 200-day MA),with the next support at $2.40 (minor trough and gap in early Apr ‘09).

- Any upside from here will likely meet resistance at around $3.13 (Apr ’09high and 1-year downtrend resistance line), followed by $3.54 (minor gap inAug ’08).

Technically buy AReit, CMT, Parkway Life REIT

Parkway Life REIT (PREIT SP; S$0.76) - BUY

• The stock has remained in its consolidation triangle and also trading marginally above its 30-day SMA. As long as it stays above the S$0.74-0.75 support, the stock has a good chance to kick out above its trend line resistance at S$0.795.

• A breakout above the S$0.795 resistance is bullish for the stock. The next resistance is at S$0.85. Indicators are currently looking neutral to marginally positive, suggesting that it is still in consolidation.

• This consolidation is a good opportunity to accumulate before the breakout. Keep a tight stop at S$0.73 or below S$0.695.

Parkway Life REIT is established by Parkway Holdings Limited to invest primarily in income-producing real estate and/or real estate-related assets in the Asia-Pacific region that are used primarily for healthcare and/or healthcare-related purposes, whether wholly or partially owned, and whether directly or indirectly held through the ownership of special purpose vehicles whose primary purpose is to own such real estate.

Ascendas REIT (AREIT SP; S$1.33) – BUY

• Previous attempts to penetrate the trend line resistance failed, indicating that this resistance is tough.

• However, the underlying buying momentum is picking up as its MACD has formed a triple bullish divergence. The bulls could start to take charge soon. The key is the breakout above the tough S$1.38 resistance with strong volume.

• Any weakness towards its S$1.20 and S$1.25 support levels should be seen as a chance to pick up the stock. Keep a tight stop below its 30-day SMA at S$1.20.

A-REIT owns a portfolio of properties in Singapore comprising Business & Science Parks, Hi-Tech Industrials, Light Industrials and Logistics & Distribution Centres.

CapitaMall Trust (CT SP; S$1.36) – BUY

• The stock broke out of its consolidation wedge pattern recently and has been holding above the resistance turned support at S$1.22-1.25 levels.

• MACD and RSI remained positive. The RSI has yet to reach its overbought levels, suggesting that there could be a tad more upside. Resistance at S$1.43 and possibly S$1.59 could be tested next.

• Continue to accumulate on weakness with a tight stop at S$1.19 or below its 30-day SMA at S$1.14.

CapitaMall Trust invests in income-producing assets which are used, or predominantly used, for retail purposes primarily in Singapore. Income is mainly derived from rental payments received from a diverse list of over 1,500 leases with local and international retailers.

Buy CapitaLand, Sino-Env; Sell China Essence

CapitaLand (CAPL SP; S$2.33) – BUY

• The stock has bottomed out in early Mar-09 and the breakout above its 30-day SMA is also positive. We expect it to re-test the trend line resistance at S$2.45 again but sellers are equally strong.

• Indicators continue to show signs of bullishness. MACD is still positive while the RSI has turned upward again. This should pave way for more room to the upside. Next resistance is seen at S$2.54 and S$2.62.

• Investors should accumulate during technical pullbacks as we fear that sellers at S$2.45 may cap near term gains. Initial support is at S$2.20 followed by S$2.07 (also its 30-day SMA). Cut losses if it inches below S$ 2.00.

CapitaLand Limited and its subsidiaries operate in residential and commercial properties, property fund management, and serviced residences. The Company also manages other properties.

Sino-Environment Technology (SINE SP; S$0.155) – BUY

• The recent pullbacks draw concern about the sustainability of its uptrend. However, yesterday’s spike up suggests that its recovery is still pretty much in place.

• Bullish divergence is seen on its MACD indicator. Also, RSI has turned upward again. There is a high possibility that it will retest the S$0.175 and S$0.21resistances soon. A successful breakout from its trend line resistance would result in gap-filling activities at S$0.295.

• Only aggressive investors should look at this stock. The bears may still hit the stock on strong rally. Support is at S$0.13. Buy on weakness. Cut loss point at S$0.125.

Sino-Environment Technology Group Ltd. offers industrial and municipal waste treatment services. The Company treats and manages industrial waste gas and industrial and municipal wastewater.

China Essence Group (CESS SP; S$0.095) – SELL

• The stock is still entrenched in its long-term downtrend channel. Having closed at a new 52-week low of S$0.095, it reflects that there is still room to the downside. Next support is weak at S$0.07 and S$0.055.

• Indicators are still weak. MACD dips further into the negative territory while RSI cuts into the oversold zone. Buyers are weak as the candlesticks deviate from the 30-day SMA.

• Investors should do well selling into strength, possibly near the resistance at S$0.12. Avoid this stock until a base-building formation is seen.

China Essence Group Ltd. processes potatoes. The Company produces potato starch, and potato starch-based products including vermicelli, five-grain noodles, and starch strips.

Capitaland heading towards 2.92

Capitaland=$2.73, Crossed resistance at $2.72... heading towards 200D MA at $2.92.

Technical view on Capitaland and Citi Dev

CapitaLand

Over the past 2 days, the S&P 500 has rallied strongly. The STI followed suit after marginally breaking long term lows. This move up by the STI has taken Capitaland up with it. Short-term momentum has been decisively strong, closing above the 200 period moving average for the 1 hour charts.

Price is moving angling away from the 30 and 50 period average quickly, indicating the possibility of a fast move in play. We recommend going long in the first hour of trading if Capitaland continues to rally. Price targets are at S$2.26 and S$2.35. Recommended stop is around S$2.00 to S$2.02.

City Dev

City Dev has also risen sharply with the STI over the past few days of trading. Today City Dev gapped up on the open before rallying higher for the day. Breakaway gapssuch as these are indicative of strong buying momentum.

It has also angled away sharply from the 30 and 50 period averages and tested the200 period. We recommend going long on close above S$4.93 with stop at S$4.70.

This would be a bet that current momentum will be continuing upward. If a sharpmove is truly in play, price should not retrace to S$4.70. There is resistance at S$5.50 and we recommend taking profits slightly under thatlevel, at S$5.48.

CapitaLand +8.0%; Players Covering Shorts

CapitaLand +8.0% at S$2.55 in strong volume, top percentage gainer among STI stocks, as short-sellers rush to cover positions following developer''s confirmation of rights issue, say dealers "The stock is a short-term buy as people who short-sold previously based on recent speculation of a rights issue are now covering their positions since the exercise is now official," says local brokerage dealer. Stock down 35.9% from early January peak of S$3.68 after Dow Jones Newswires first reported company mulling rights issue. "We think this forces existing shareholders to take up the issue to ensure they are not diluted," says Macquarie; reckons most investors will give management "the benefit of the doubt" with regard to ability to ride through current difficult market conditions. Resistance eyed at 20-day moving average of around S$2.78.

CapitaLand Posts 88% Drop in Quarterly Net, Sells Rights Shares

CapitaLand halt trading since this morning. And now the news is out.

CapitaLand Ltd., Southeast Asia's largest property developer, will raise S$1.84 billion ($1.2
billion) after reporting an 88 percent slump in its fourth quarter profit.

Net income for the three months ended Dec. 31 fell 88 percent to S$78 million ($52 million) from S$674.7 million a year earlier, the company said in a statement to the Singapore exchange.

Revenue declined to S$703.7 million from S$1.32 billion a year earlier, the statement said.

So what is the theorectical share price?

Last done: $2.36
Terms of Right issur: 1 right for 2 shares
Conversion price: $1.30
Implied price during opening: ((2 x $2.36) + $1.30) / 3 = $2.006

Hourly Chart for Capitaland=$2.41 (may rebound to yellowline)

So any right issue for Capitaland?