Stock With Momentum: AXIS Real Estate Investment Trust

This article first appeared in The Edge Financial Daily, on July 22, 2019.
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AXIS Real Estate Investment Trust (+ve)

AXIS Real Estate Investment Trust (REIT) (fundamental: 1.5/3, valuation: 0.15/3) made it into our Stocks with Momentum list last Friday for the first time this year. The last time the trading of Axis REIT shares triggered our momentum algorithm was on April 2, 2015.

Last Friday, the counter closed 2.67% or five sen lower at RM1.82, after 5.94 million shares were traded, about 4.6 times more than its 200-day average trading volume of 1.28 million shares.

The REIT announced last Wednesday that it was acquiring a property in Bayan Lepas, Penang from Ire-Tex Corp Bhd for RM20.5 million, which it expects to contribute positively to its future earnings.

The property, which sits on a 90,040 sq ft leasehold plot, comes with a double-storey factory cum office building, where the factory is fully occupied. The land acquisition will be funded by Axis REIT’s existing bank financing.