Footfall to retail malls (especially those located in the CBD area) have taken a beating since Phase 2 (Heightened Alert) came into effect from 16 May 2021. Apart from the “no dining in” restriction, some of the more notable measures include group size being reduced to just groups of 2, and that working from home is once again the default.
Today (09 June 2021), there was an article in The New Paper which talked about the current situation, and difficulties faced by retailers – you can read the article in full here – “Retail stores take a beating as footfall slows to a trickle“.
However, it’s not all doom and gloom. As I am writing this post, I note that the number of community cases have come down once again (there are just 3 new cases in the community, with one of them in the workers’ dormitory being reported yesterday, 08 June 2021.) With the number of community cases heading down once again to single digits, my opinion is that it is highly likely that some of the movement restrictions will be relaxed when the Phase 2 (Heightened Alert) ends this Sunday, 13 June 2021.
This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2,000 followers.
I am of the opinion that any relaxation in movement restrictions could benefit the retail industries, and hence REITs with retail properties in the portfolio could see their unit prices going up in the near-term. There are 6 REITs in Singapore with their portfolio consisting of retail REITs. They are: CapitaLand Integrated Commercial Trust (SGX:C38U), Frasers Centrepoint Trust (SGX:J69U), Mapletree Commercial Trust (SGX:N2IU), Starhill Global REIT (SGX:P40U), SPH REIT (SGX:SK6U), as well as Suntec REIT (SGX:T82U).
In this post, you will find my technical analysis on the 6 REITs – particularly how their unit prices may move in the near-term (bullish as well as bearish scenarios), along with some of the major support and resistance points I’ve identified you may like to take note of.
The technical indicators I’ve used are as follows:
- Moving average on a weekly timeframe – 20-day (in dark green), 50-day (in light green), 100-day (in orange), 150-day (in yellow), and 200-day (in red)
- Bollinger band on a weekly timeframe – both the upper and lower bands in light blue
- MACD on a daily timeframe
- Stochastic on a daily timeframe