UOL - is the recent sell-down drying up?
With a year-to-date (ytd) return of 9.5% based on yesterday's close at $9.57, $UOL(U14.SI)$ is currently the sector leader amongst pure-property play developers, outpacing the likes of peer City Dev (+3.1% ytd)
This is in spite of the 6% sell-down since UOL's earnings release on 12 Aug, with heavy profit-taking after its post-results spike
UOL's share price had spiked 2.4% to a two-month high of $10.17 after reporting a 23% increase in net income to $252.2 million, before retracing, consistent with profit-taking after a strong run into the print
🤖Technically, Bloomberg AskB notes that UOL is currently hugging the lower Bollinger Band (around $9.40–$9.50 area), suggesting the stock is in a stretched short-term sell condition and acts as support levels
AskB notes that while UOL's near-term technical bias remains mildly bearish, a reclaim of the 50-day moving average at $9.67 on volume would be the first signal of a trend reversal
👀Looking ahead, one of the share price catalysts could be UOL's Marina Square redevelopment- expected to add 702 residential units to the group’s pipeline - which is one of the most anticipated projects amongst analysts. UOL expects to receive written permission for the redevelopment from the URA in 3Q
🆕Investors keen to trade any short-term upside move in UOL shares can now do so via Macquarie's newly listed UOL call warrant $UOL MB eCW270222(OWZW.SI)$
(https://warrants.com.sg/tools/livematrix/OWZW) which costs SGD 0.058 while UOL is trading at SGD 9.58 and moves approximately 5.6% for a 1% move in UOL shares based on its current effective gearing level at 909AM today
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