Gulpz

KLSE: REITs Under A Penny AHP, KIPREIT ARREIT,ALSREIT

Long
MYX:4952   None
So today we going to take a look at the 4 underperforming KLSE stocks in REIT industry. They are 4952, Amanah Harta Tanah PNB, 5280 KIP Real Estate Investment (Orange Line), 5127 Amanah Raya Real Estate (Pink Line). & 5269 AL-Salam Real Estate Investment (Blue Line)

To be more specific lets find out underlying sentiments on these charts.

What is the common behavior & trait ?. Obviously price been declined since 2017 towards 2018 and majority of local real estate market analyst (Residential & Office) thought it was a cool off period for Malaysia market, means lesser transactions happened during the period (in terms of quantity not price).

But does it really affect REIT?. To answer this question lets take a look at 2018 progress. FY 2018 was a tough time for malaysia REIT,s the dividends was offset by declining price. You can see overview for 2018 at ; Most of the stocks are giving negative yield however there are some REITs that manage to maintain positive yield towards their investors (AXIS,SUNWAY,IGB).

What did these 3 stocks do differently from the others?. Major acquisitions with high rental yield, low debt, high cash reserved. blablabla. the list can go on.

However why does the others are doing same business core were outrun by bearish market?.
Most of Big Whales of these stocks investors are tied to government policies and decision ( Funds Enterprise; EPF, TH, PNB ); so there is rigid caveat on buy & sell).
Require more times & efforts for them to buy & sell. Therefore the stocks price are not volatile enough to make movement. Another reason is because of high debt & income stream ratio. Maybe im wrong.

In terms of TA, these 4 stocks mentioned above could be turning point towards bullish trend, why?. because the price now is at 2009 price; 10 years ago. And there is a lot of frantic sellers during 2017-2019. So the probability of majority seller already cash out is high (Means minor sellers). The only challenge is whether volumes are able to sustain towards RM1 + . Average current price is around 0.80 cents per stocks. it will be great to see if it goes above RM1 for around 20% gained. (Btw Bursa KLSE didnt allow borrow for SHORT seller so the only way of making money is to BUY and SELL)

P.S 2019 looking good so far ,price climb a bit for KIP, AMANAH RAYA & ALSREIT

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.