CapitaMall Trust was bought with the intention to tap the growth in the retail sector, as well as to gain a steady stream of income from its steady dividends. Being the first REIT to be listed on SGX, and the only Singapore-based REIT in the STI component stocks, I believe it is a safe and strong bet to own. Hence after it dropped from a previous high of $2.16 in October 2010 to $1.75 in March 2011, I decided to buy 3 lots to keep for dividends.
Since the purchase, the share price have been rather volatile due to the uncertain macroeconomic conditions. As observed, CapitaMall Trust showed its resilience throughout this period of uncertainty as the share price just fluctuate between a range of $1.61 to $2.07, while other shares experienced a much higher volatility.
The only regret I had is that I did not add on my positions in this strong counter when the share price dropped below my initial purchase price. Even when opportunities presented themselves twice during this period, I did not act.
Overall, my total gains in this counter is a decent 22%, with total dividends collected accounting for 8%.
In my opinion, with the current low interest environment and the on-going asset enhancement initiatives by CapitaMall Trust on a couple of its malls, I believe there is room for further appreciation in its share price. However, as the STI moved above the 3,000 level and CapitaMall Trust retest the high of $2.00 level after a rather long period of volatility, thus I decided to sell my holdings to realize my profits first.
My thoughts at that time: Since I have already set a target price of $2.00, once it hit my target price, I shall be discipline to sell it and realize my gains.
Lessons learnt: Discipline is always great, as it increases my satisfaction with my gains if the share price drops after the sale. On the other hand, it also minimizes regret if the share price rose further after the sale, as I am being discipline and sticking to my plan.
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