CapMallsAsia has been on the downtrend since Dec 2010 till now and is one of the worst performing index stocks YTD. Today 18th Oct 2011 is also the start of its dual-listing stock in HSI. As of 12pm CapMallsAsia was last traded at HKD7.77 in HSI and that is about S$1.27 with an exchange rate of SGD1 = HKD6.12. In STI meanwhile it hit an intra-day low of S$1.24 as of now and at this moment of time, last done is S$1.255. Valuation of it is higher in HSI than in STI. That is something very interesting. Is Hong Kong investors able to appreciate the valuation of CapMallsAsia than those in Singapore ? Fundamentally, at current price, the stock is undervalue. Its NAV is about S$1.52 and current price is about 0.83x of its NAV.
Technically, the price still trap inside the downtrend channel with an some support at S$1.25 and S$1.15. Should it continues to hit the lower boundary of the channel, a sub S$1 price is possible ( estimate around between S$0.95 - S$0.98 ). There are several levels of resistance at the moment with the immediate at S$1.31 ( the upper boundary of the channel ) and 2 others are at S$1.57 and S$1.80. Past days price has been moving up towards the upper boundary of the channel with an increasing in volume and this is something one should note of. It is possible to break that S$1.31 boundary given the current development so far.
CapMallsAsia will be releasing its 3Q earning on 19th Oct 2011 and it is something worth monitoring for the time being.
