More exciting than the rather staid Straits Times Index, is the performance of selected property related stocks such as Singapore Press Holdings (SPH), and United Industrial Corp (UIC) which has announced a name change to Singapore Land Group subject to shareholders’ approval at an EGM. City Developments (CDL) is attempting to overcome the hole caused by Sincere Property Group. Technically at any rate, CDL’s prices breached the four-times tested resistance at $8.08 on Apr 1, indicating an initial upside of around $9.20 to $9.30. This is not an April’s Fool joke.
Elsewhere, SPH ended the week at $1.67, rising some 9% overnight. This is above our initial upside of $1.60. Prices traded well above $2 pre-Covid, and price trajectory is likely to take the stock back to that level. Traders should continue to raise their stop loss levels, which should now be at $1.50.
SEE:Continue to 'hold' SPH REIT as 1H21 results fall in line with expectations: analysts
Sembcorp Marine rose more than 8% overnight to end the week at 18.5 cents. Its move takes it simultaneously above its 50-, 100- and 200-day moving averages at 15.7 cents, 15.5 cents and 18 cents respectively. This in itself is a bullish signal. In addition, the breakout above the moving averages was confirmed by rising momentum and a significant rise in volume. Such a break indicates an initial upside of 27 cents.
Last week, in Right Timing, we featured UIC, and we have regularly featured this stock since before the privatisation of Jardine Strategic Holdings was announced. UIC has an upside of $2.90 in the short term and it is likely to meet that objective.
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The Straits Times Index rose a modest 24 points week-on-week to 3,181, belying the excitement elsewhere in the market. The original break above the narrow 3,071 to 3,118 range in the week of Mar 15-19 provided the impetus to test 3,368 to 3,377 in the relatively near term, in say a month.
