Stock Movement - Capitacomm trends up to 52 weeks high. K-Reit breaks out of trading range.

CapitaCommercial Trust closes at 52 weeks high of 1.18 today at a high volume of about 12,046,000 units. It manages to touch 1.20 at the intraday high. K-Reit, another office REIT, also breaks out of its trading range after the rights issue to close at 5 weeks high of 1.07, which is also its intraday high.

Is this signaling the beginning of recovery of the office sector? The recent K-REIT Asia Investor Meetings December 2009 seems to suggest so in the Singapore Office Sector Outlook of the presentation slides.

Currently both REITs are trading at a yield of around 5-6%, and at a discount to their NAV of 1.49. Gearing of Capitacomm and K-Reit are around 31% and 9% (post rights issue) respectively.