Frasers Property and its REITs – My Personal Technical Analysis (19 August 2020) (Guest Post)
Listed in the Singapore Exchange Securities Trading Limited (“SGX-ST”) and headquartered in Singapore, Frasers Property Limited (SGX:TQ5) is a multi-national owner-operator-developer of real estate products and services across the property value chain.
This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241 followers.
Its properties span across 5 asset classes – residential, retail, commercial and business parks, industrial and logistics, as well as hospitality across different geographical locations and some of them include Southeast Asia, Australia, Europe, as well as China.
Frasers Property is also a sponsor of 3 REITs: Frasers Centrepoint Trust (a pure-play retail REIT), Frasers Logistics and Commercial Trust (whose portfolio include commercial and business parks, as well as industrial and logistics properties), and Frasers Hospitality Trust (where it owns and/or operates serviced apartments and hotels.)
In this post, I will be sharing with you my technical analysis on the recent share price movements of Frasers Property and its 3 REITs (based on a daily timeframe), along with my analysis of how their share prices are likely to move in the near-term.
Before I begin, do take note that whatever that you are going to read from this point onward is based on my personal technical analysis, which I am sharing for educational purposes only. They do not represent any buy or sell recommendations for any of the companies. As always, please do your own due diligence before you make any trading decisions.
Let’s get started…
Frasers Property (SGX:TQ5)
The following is Frasers Property’s share price movements (on a daily timeframe) since mid-March 2020 till yesterday (18 August):
Frasers Property’s Share Price Movements (on a Daily Timeframe) between Mid-March 2020 till 18 August 2020
As you can see from the above, from a low of just S$1.00 in mid-March, its share price climbed to a high of S$1.40 in early-June (a 40.0% gain) before slipping down thereafter.
When trading ended yesterday (18 August), its share price closed at S$1.18, and if you notice, it is sitting on the support line of the green uptrend channel.
Looking at the technical indicators MACD and stochastic, both are in an uptrend position, suggesting that it is likely that the company’s share price may bounce up from there in the near-term.
Personally, if I am looking to trade this one, I will wait for the share price to break above the resistance of the yellow downtrend line (at above S$1.20). Also, I will want to make sure that the 2 technical indicators (in MACD and stochastic) are in an uptrend position before I go “long” on the company.
Frasers Centrepoint Trust (SGX:J69U)
As I have mentioned in the beginning of this post, Frasers Centrepoint Trust is a pure-play retail REIT, with its malls all located in Singapore. Its portfolio consists of malls which we are familiar with, including Causeway Point, Northpoint City North Wing (inclusive of Yishun 10 retail podium), Changi City Point, Bedok Point, YewTee Point, and Anchorpoint.
Now, let us take a look at the retail REIT’s unit price movements (based on a daily timeframe) since early-April 2020 till yesterday (18 August):
Frasers Centrepoint Trust’s Unit Price Movements (on a Daily Timeframe) between Early-April 2020 till 18 August 2020
One look you can tell that its unit price have been on an upward moving trend since then, where it climb from S$1.73 in early-April to S$2.63 in early-June (a 52% growth in its unit price in 2 months) before retreating (notice how its unit price have fell along the yellow channel.)
The REIT’s unit price closed at S$2.37 yesterday, just slightly above the resistance line of the yellow downtrend channel. MACD is flat, while stochastic is in an uptrend position.
If I were to short-term trade in the REIT, I will wait for confirmation over the next day or two to make sure that its unit price does not retreat back under the resistance-turned-support line of the yellow downtrend channel.
Frasers Logistics and Commercial Trust (SGX:BUOU)
The Trust was formed from a merger between Frasers Logistics Trust and Frasers Commercial Trust back in April 2020, with the former being renamed to Frasers Logistics and Commercial Trust.
Its portfolio consists of 99 logistics and commercial properties worth approximately S$6.0 billion across 5 major developed markets – Australia, Germany, Singapore, United Kingdom, as well as the Netherlands.
The following is the REIT’s unit price movements based on a daily timeframe from mid-March 2020 till yesterday (18 August):
Frasers Logistics and Commercial Trust’s Unit Price Movements (on a Daily Timeframe) between Middle of March 2020 till 18 August 2020
Since the middle of March, its unit price have been trending upwards gradually, where its unit price went up from S$0.67 to S$1.39 when the market closed yesterday (18 August.) At its current unit price, it is just one cent away from its current 52-week high of S$1.40.
Both the REIT’s technical indicators (MACD and stochastic) are in an uptrend position, suggesting that in the near-term, its unit price could very well re-visit its current 52-week high and attempt to create a new high from there.
In case you’re wondering if I am interested in short-term trading in the REIT since its in an uptrend, personally, I am not into trading any companies where their share prices are at or very close to their 52-week highs. So, I’d be staying on the sidelines and just monitor its unit price movements.
Frasers Hospitality Trust (SGX:ACV)
Finally, we have Frasers Hospitality Trust, whose portfolio comprises of serviced residences as well as hotel properties. Some of the brands that comes under the Trust include Fraser Suites, Fraser Place, Fraser Residence, Modena by Fraser, Capri by Fraser, Malmaison, and Hotel du Vin.
Its hospitality assets are spread across various geographical locations across the world, including Australia, Southeast Asia, North Asia, Middle East, Africa, Europe, as well as in the United Kingdom.
The REIT has been adversely affected as a result of the ongoing Covid-19 pandemic globally, where most forms of travelling are currently not feasible.
The following is the REIT’s unit price movements (based on a daily timeframe) since the middle of March 2020 till yesterday (18 August):
Frasers Hospitality Trust’s Unit Price Movements (on a Daily Timeframe) between Mid-March 2020 till 18 August 2020
As you can see from the above, its unit price climbed from middle of March till early June, before reversing and headed down. At the time of writing, the hospitality trust’s unit price closed at S$0.430, with technical indicators MACD remaining flattish, and stochastic in an uptrend position.
Looking at its recent unit price movements, I am of the opinion that the unit price is likely going to creep back under the resistance line of the red downtrend channel in the near-term. If I am looking to short-term trade in the Trust, I will wait for it to once again to break above S$0.430 on a high volume and wait for both MACD and stochastic to be in an uptrend.
I hope you find the above technical analysis share of Frasers Property and its REITs useful, and I’d like to once again stress that the above is just for educational purposes. Please do your own due diligence before you engage in any trades in any of the companies above.
Disclaimer: At the time of writing, I am a unitholder of Frasers Centrepoint Trust (the retail REIT is in my long-term investment portfolio, and I have no plans to divest my unitholdings in the REIT.)
Once again, this article is a guest post and was originally posted on ljunyuan‘s profile on InvestingNote.
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