Equity Securities

Question 1

As a property analyst, you read with great interest the following headline:

"Govt eases some property cooling measures, cutting seller's stamp duty and slightly relaxing TDSR rules

Joint statement MAS, MND, MOF - 10th Mar 2017"

Analyse the impact and likely outcome on the general residential property sector.

(10 marks)

Question 2

Appraise impact on the selected stocks, UOL and CapitaLand using the following techniques:

(a) Fundamental analysis

(15 marks)

(b) Determine their intrinsic values

(10 marks)

Question 3

Apply technical analysis and discuss on the trends of the TWO (2) stocks in Question 3, including entry and exit levels.

(15 marks)

Question 4

From the information gathered, design and draft a recommendation report on the 2 stocks in Question 3, using the reference:

STRONG BUY

(>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLD

(-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUED

(negative total return i.e. > -10% over the next 12 months)

SELL

(negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

(5 marks)

Additional information for crafting the evaluation report:

- illustrations/diagrams

- Paginating the contents with a number to indicate which question it is addressing

- Suggested numbering sequence for report flow is answers to Q5, Q2, Q3 and Q4

- Each illustration/diagram should be no larger than a sixth of a A4 size paper

- Information from Appendices UOL and CapitaLand should be utilized

- UOL last price - SGD7.10 CapitaLand last price - SGD3.62