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AIMS AMP CAP REIT, will it start to go up soon?

Recently, after dropping a lot, REITS as a sector has a sign of turning up. From the FTSE ST real estate Investment Trust index, it can be seen that this sector is turning up already and was quite strong for the past two month. One investment style is to find stocks with good yield so that even the share price goes down, the investor still get the dividend or yield and is not likely to take high risk. If the investor manages to entry at good timing and the price goes up thereafter, he may get both the yield and the capital appreciation. As REITS sector is turning up now, if one can find a REIT with a good yield and just turning up from the bottom, it may become a good investment for him. AIMS AMP REIT at this moment is a potential stock to provide this kind of opportunity

AIMS AMP REIT has been dropping for around 1 whole year already. From weekly chart we can see that after breaking down the support at 1.35, it managed to hold well and did not drop any more. MACD histogram already formed a bullish divergence, indicating that the sellers are turning weak and buyers may step in soon. From the daily chart, it can be seen that both MACD histogram and Moving averages are indicating bullish signal. AIMSAMP REITS issue right in late Feb, this is another reason to push down the price during that time. However, it managed to turn up only 1 month after the issue of the rights. This is another sign of strength. From the fundamental perspective, the recently financial statement released on 29 Jan report an increase of gross revenue and net property income for 15.4% and 18.6%, respectively on yearly basis, indicating that the company is have a healthy growth. The annual yield was 7.5%, which is quite attractive. One may consider buy AIMS AMP REIT if the price goes above the resistance at 1.35. By doing this, one is buying a high yield and stable company at a good timing where it may just turn up. For shot term investors or traders, the recently low may be considered as a support to set stop loss.

FTSE ST Investment Trust inde

Weekly chart:

Daily Chart:

Robin Han
Robin Han

Dr. Robin Han, a graduated from NUS with a Ph.D in Department of Chemical and Biomolecular Engineering, has been actively trading in Singapore stock market since 2007. His passion has let Dr. Robin to become a full time trader since 2010. He has extensively share his experience with his fellow investors on trading Singapore stock market using both technical analysis and fundamental analysis.

Dr. Robin is a regular guest speaker for radio 95.8 on financial program. He also has been invited by different companies and societies to conduct educational seminars on stock investments, including Shares Investment, Wealth Directions (Founder: Dennis Ng), Traders Round Table, SIM, Raffles Business International, Online trader's club and Alpha Alliance. He is also contracted by N2N (a listed trading software provider in Malaysia) as their overseas educational speaker in stocks.