This is an update to my Singapore Stock Portfolio for the Month end of October 2011. For previous months, please see
Singapore Stock Portfolio for the Month end of September 2011
Just made some minor changes to the Portfolio, sold off CDL Hospitality some parts of Ascott, Cambridge and SPH. Also added more positions to Ascendas, Mapletree Commercial, CapitalMall Trust at value prices. Most stocks have rallied quite nicely last month especially with the deal by ECB for Greece bondholders to voluntarily take a 50% discount on the bonds. However, focus has now shifted to Italy, which is a much bigger economy than Greece and fear continues to dominate the market. I don’t think the dark clouds are over and I will still tread cautiously, avoiding the cyclicals.
CDL Hospitality – Sold it off at $1.58, representing approximately 15% profit in less than a month. While I could have waited for the dividends, I thought I might as well lock in the gain, which is close to double the annual dividend yield on the stock. Also, looking at the global outlook, things still look rather gloomy, I don’t think I will take my chances on a highly cyclical stock.
CapitaMall Trust – I added the positions at $1.785, which is higher than the average price of my current holdings, but still represent a subsantial discount to the last 2 weeks where it spiked to $1.90. I actually wrote a post about CapitaMall Trust in response to a private placement earlier.
Keppel REIT – Another stock I purchased and sold off within the month, thus not listed here. I bought it on the announcement that Keppel REIT will be issuing rights to purchase Ocean Financial Center from Keppel Land. I thought the 10% drop was an over reaction by the market and thus bought in at 93.5 cents. Within about a week, the price hit $1 and I sold it off for a nice 6.5% profit. Why didn’t I keep it for dividends? Simple, I think the global economy still looks gloomy and office rentals will be the first to fall among all the REITs. Furthermore, the oncoming supply of offices are worrying, I wonder about the stability of office rentals especially in the city center where Keppel REIT owns most of its assets. It was a short term punt and if the price did not recover shortly, I would be ok with a 7.5% dividend yield.
For further reading, you may be interested in: