Buy Suntec Reit, JMH, Straits Asia Resource Technically

Suntec REIT (SUN SP; S$0.72) – BUY

• The stock is now testing its medium term downtrend resistance at S$0.73. A breakout above this resistance is bullish for the stock. The next resistance is at S$0.785 and S$0.86.

• MACD has reconfirmed its golden cross while RSI has also inched higher from its neutral position.

• Buy half now and the rest on the breakout above the said resistance. Put stop loss below its 30-day SMA at S$0.635.

Suntec REIT owns prime office and retail space in the Central Business District(CBD) of Singapore. Its portfolio comprises of office and retail properties in Suntec City, a prime landmark property strategically located in the CBD and the largest integrated commercial complex in Singapore (including Singapore’s largest shopping mall).

Jardine Matheson (JM SP; US$21.22) – BUY

• The stock is still languished in its medium term sideways trend channel despite having bounced off its Mar lows of US$15.90. It tested the upside resistance at US$23.90 but it did not have enough in the engine to breakout above it. It is now forming a base near the middle band support at US$19.90.

• MACD and RSI are starting to hook upwards again, probably suggesting that it could soon head higher to retest its upper resistance at US$23.90.

• Furthermore, it is still above its 30-day SMA, which is now at US$19.65. Investors may want buy near the support levels of US$19.90. Cut losses if prices fall below the US$19.00.

Jardine Matheson's interests include Jardine Pacific, Jardine Motors Group, Jardine Lloyd Thompson, Hongkong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle & Carriage and Astra International. These companies are leaders in the fields of engineering and construction, transport services, insurance broking, property investment and development, motor trading, retailing, restaurants, luxury hotels, motor vehicles and related activities, financial services, heavy equipment, mining and agribusiness.

Straits Asia Resources (SAR SP; S$1.07) – BUY

• The stock tested the uptrend channel resistance but failed to breakout above it. It has since pullback to close to its 30-day SMA before rebounding higher.

• Indicators are just about to turn negative, suggesting that the stock is still in consolidation.

• Investors should buy on weakness, preferably near the 30-day SMA currently at S$0.94. Stop loss is at S$0.89 or below. The stock is likely to rebound to try to retest the S$1.19-1.20 resistance again soon.

Straits Asia Resources (SAR) is primarily engaged in thermal coal mining on Sebuku Island, South Kalimantan, Indonesia. SAR commenced operations at its Sebuku mine in 1997 and holds the rights from the Indonesian Government to mine for coal in its concession area until 2027. A substantial portion of Sebuku coal is exported, largely under long-term contracts, to power generation companies within Asia.

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Investor should consider AscottREIT

Ascott REIT($0.47) - It has been hit badly in this econ0my crisis. Market is also focasting a dip fall in its distributable income from its service apartment business. Hence, we have reason to believe the negatives have been priced in. Trading at 69% discount to its NAV at $1.51, we believe it is a medium term buy with target at $1.00.

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.