When the Capital Group reduce its holdings....this one drop ~30cts.

BUT, this time round when Temasek did the same to its stake... this fellow moving up.

What/where's the logic? Anyone??

Our pivot point stands at 1.84. Our preference: short term rebound. Alternative scenario: the downside breakout of 1.84 would call for 1.77 and1.73.

Comment: the RSI is above its neutrality area at 50. The MACD is negative andabove its signal line. The MACD must break above its zero level to call forfurther upside. Moreover, the share stands below its 20 and 50 day MA(standing respectively at 1.9 and 2).

CapitaMalls Asia is currently tradingnear its 52 week low at 1.83 reached on 17/12/10.

Supports and resistances: 2.09 *2.04 **2 1.89 last 1.86 1.84 **1.77 *

//TRADING CENTRAL is a commentary service specialising in technical analysis.//

On the P & L, cost of debt is definitely cheaper than cost of capital financing but any rights issue after a recent IPO may be subject to certain SGX rules.

Company has zero debts and comfortable cash balances, but the bond issue will raise funds for its planned $1B acquisition of more shopping malls. This bond issue creates value and expand its balance sheet. The company would be able to utilise its debt capacity and improve the balance sheet. Eventually the baby has grown to stand on its own to have an identity of its own?

Management is known for ability to build good class shopping malls in prime locations and is part of Singapore corporate culture to build the best and manage the malls with good returns.

Capitaland group next task likely to go for dual listing in key financial centres particularly in China. Lets not rule out Sydney after the successful SGX acquisition of ASX.

(Australia is flushed with funds enriched from high commodity prices economy such that even the banks have to give high deposit rates in order to control inflation. Australian companies should be borrowing to fund oversea business expansions like what the Korean and Japanese have done but this does not seem to be in their culture. Koreans and Japanese tend to look out of their countries and see the world as their market. So with a combined SGX and ASX Singapore companies can eventually tap on Australians capital ?)

In the long term, this is definitely a growth stock.

CapitaMalls Asia Ltd (the “Guarantor” or “CapitaMalls Asia”) announced that its wholly-owned subsidiary, CapitaMalls Asia Treasury Limited (the “Issuer” or “CapitaMalls Asia Treasury”), is offering for subscription up to S$200 million in principal amount of 1-year bonds and 3-year bonds to the public in Singapore (“Public Offer”). If applicable, some of these bonds could be re-allocated to institutional and other investors. The 1-year bonds carry an interest payment of 1% per annum, payable on 21 January 2012 . The 3-year bonds carry an interest payment of 2.15% per annum, payable annually on 21 January in 2012, 2013 and 2014. Payments under the 1-year bonds and the 3-year bonds will be irrevocably and unconditionally guaranteed by CapitaMalls Asia. The sole bookrunner and lead manager of the offer is DBS Bank Ltd. The Public Offer will start at 9 a.m. on 7 January 2011 and close at 12 noon on 17 January 2011 . Applications are to be made via ATMs of DBS Bank (including POSB), OCBC Bank and UOB Group, and the internet banking website of DBS Bank. An application under the Public Offer is subject to a minimum of S$2,000, with incremental multiples of S$1,000. Investors can apply for either or both of the 1-year bonds and 3-year bonds.