With the recent global market selloff, the probability of a US rate hike has reduced substantially and therefore the investors are seeking safe haven and chasing for yields during the selloff episode. The REIT names in Hong Kong such as LINK REIT has just made record high in its share price today. Similarly, most of the names on the list of REITs in Hong Kong (https://www.hkex.com.hk/eng/prod/secprod/reit/reitlist.htm) are also flagging positive indications on OTAS.
Link Real Estate Investment Trust (823 HK)
This high yield defensive stock has just made record high in its share price with decent trading volume after recent earnings and dividend. In fact, an MACD (-) contra BUY signal was fired on OTAS just a few days ago, accurately indicated to us of the positive return in the following days.
Link REIT on record high today
Fortune Real Estate Investment (Hong Kong) Trust (778 HK)
Other than the outstanding performer above, Fortune is another REIT stock that we can keep an eye on. Market is expecting its Q1 2016 Earnings Release coming up soon on July 25th 2016. EPS momentum of the name is also among the top 10% of all the positive performers in the industry group, with 12 months forward EPS momentum up by 1.5% and 0.7% over both one and three months respectively.
Moreover, an OTAS Fast Stochastic (-) contra BUY signal was just fired upon yesterday’s close with a fairly high win rate of 72%, indicating a positive return of 2.8% in the coming days.