Office REITs to stay resilient despite consolidation

CAPITALAND COMMERCIAL TRUST ($1.60) - Facing resistance

- Prices broke below 50 day moving average and support at $1.57

- Indicators are moving in different directions

- Upturns are unlikely to sustain a break above resistance at $1.60

FRASERS COMMERCIAL TRUST ($1.395) - Unsustainable rebound

- Prices have bounce off their 50 day moving average

- Any further price rebound is likely to encounter resistance at $1.45

- Break above this level may not be sustained

- Support is at $1.37

KEPPEL REIT ($1.115) - Easier phase ahead

- A selloff was evident on Oct 19

- Volatility is likely to be low with prices moving into sideway range

- Support is at $1.08

- Resistance is at $1.15

MAPLETREE COMMERCIAL TRUST ($1.545) - Uptrend gives way

- Prices are likely to be in a corrective phase

- Prices broke below 50 day moving average and support at $1.55

- $1.55 likely to act as resistance

- Support is at $1.50

SUNTEC REIT ($1.73) - Could strengthen

- Counter is in a slightly different cycle from other REITs in the sector

- Counter is showing signs of strength

- Prices should be able to rebound to the top of the range at $1.80

- Support is at $1.70

OUE COMMERCIAL REIT (71 cents) - Set to ease

- Upside is likely to be limited to around 72 cents

- More likely, prices are set to ease towards 66 cents

- Quarterly momentum has been largely flat

- Break below equilibrium line would confirm a price decline

(Source:  TheEdgeSingapore October 24 2016)