This note is an extract from my weekly research report.
JSE SA Listed Property Index (J253) - The sector has been and remains one of the most susceptible to the economic downturn due to the Covid-19 pandemic, which has accelerated among other things, e-commerce. From being on the verge of some constituents not paying dividends and in some cases compromising their REIT statuses, the sector remains fraught with uncertainty. Whilst the horizon remains cloudy, what does the long term chart say? In a similar manner to the July to October 2009 breakout, The 277 level on the index appears to be a key level for long term reversal following the strong multi-year downward trend. Over the last few months we have seen the price find support and rebound off the multi-year swing lows with a strong rejection of the breakdown level in November 2020. Below we highlight the monthly chart for J253 and also provide similar examples in IPL, KAP and TKG.
JSE SA Listed Property Index (J253) - The sector has been and remains one of the most susceptible to the economic downturn due to the Covid-19 pandemic, which has accelerated among other things, e-commerce. From being on the verge of some constituents not paying dividends and in some cases compromising their REIT statuses, the sector remains fraught with uncertainty. Whilst the horizon remains cloudy, what does the long term chart say? In a similar manner to the July to October 2009 breakout, The 277 level on the index appears to be a key level for long term reversal following the strong multi-year downward trend. Over the last few months we have seen the price find support and rebound off the multi-year swing lows with a strong rejection of the breakdown level in November 2020. Below we highlight the monthly chart for J253 and also provide similar examples in IPL, KAP and TKG.
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