Retail malls open as Singapore begins its Phase 2 reopening

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Retail malls open as Singapore begins its Phase 2 reopening

On 19th June, Singapore started to reopen its economy, with retail malls and shops finally begun to open their doors after approximately two months of closure. What greeted them were crowds returning, as queues were reported outside shops, with consumer confidence still seemingly strong amid the pent-up demand.

With Singapore entering into Phase 2 of economy reopening on 19 Jun 2020, slightly earlier than expected, and community Covid-19 cases seemingly under control, it has given rejuvenated the retail sector, as more activities are to resume and traffic flow to return. Consumer related sectors such as retail related REITS, and shopping mall related property counters could hence see some upside potential, as their earnings may not be as disastrous as previously feared.

Among which, some of the counters will include Capitalmall Trust and Capitaland, which is vested in a large number of shopping centers, as well as F&B related proxies such as SATS.

Technical Outlook (Powered by Trading Central):

Capitaland ST

Capitaland ST: Bullish bias above 2.79

Pivot: 2.79.

Our Preference: Long positions above 2.79 with targets at 3.24 & 3.47 in extension.

Alternative Scenario: Below 2.79 look for further downside with 2.61 & 2.45 as targets

Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Capitalmall Trust ST: The upside prevails as long as 1.83 is supported.

Pivot point: 1.83.

Our Preference: The upside prevails as long as 1.83 is support

Alternative Scenario: Below 1.83, expect 1.68 and 1.59

Comment: The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 2.01 and 1.85).

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