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This STI-laggard has broken out and looks set for higher levels; who will follow?

Goola Warden
Goola Warden • 2 min read
This STI-laggard has broken out and looks set for higher levels; who will follow?
CLI has broken out of a base and is set for higher levels. Underperformers MINT and DC REIT are at the top of base formations.
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CapitaLand Investment (CLI) ranked among the top 11 worst performers in the Straits Times Index last year. However, the stock has made an auspicious start in the first full trading week of 2026 from purely a technical perspective. Prices broke out of a base formation at $2.72 on Jan 2, indicating an initial target of $2.91 which is almost at hand. CLI closed at $2.89 on Jan 9, a one-year high. The up-momentum remains intact and prices are likely to reach and breach $2.91. In 2022, before the interest rate hike cycle, prices traded at $3.83. Over the course of the next few months, CLI will probably trend progressively higher, punctuated by sharp retreats from time to time. The breakout level of $2.72 is the new support.

Another index stock that ranks among the worst performers, Mapletree Industrial Trust (MINT) is in a base formation. Its 50-, 100- and 200-day moving averages are not as positively placed as CLI’s were on Jan 2. However, they are gradually strengthening. At its Jan 9 closing price of $2.09, MINT is at a potential breakout level. A clear move above $2.09 provides the impetus to swing to $2.23.

Keppel DC REIT, another one of the STI’s worst performing stocks, has been retreating since Oct 2025. This could be because investors realise that data centre investment comes with heavy capital commitments over time. Some market observers believe the capex required by data centres is higher that that consumed by the US-based office S-REITs.

Technically, since the moving averages are negatively placed, directional movement indicators remain negative, and quarterly momentum remains adrift, Keppel DC REIT’s price may continue to consolidate. Support appears at $2.13.

See also: Which of the STI’s worst performers could shine in 1Q?

A non-index stock, Digital Core REIT (DC REIT) is attempting to break out of a thrice tested resistance at 54 US cents. The moving averages are positively placed as is directional movement and its components; quarterly momentum is rising. These indicators suggest a successful breakout.

Fundamentally, MINT would benefit from a reduction in US federal funds rate since more than 60% of its debt is in USD while DC REIT would benefit from lower US risk-free rates because its trading price is in USD.

See also: Year's top gainers and losers are mainly small caps

A word of caution. US risk-free rates remain stubbornly high and were at 4.18% on Jan 9.

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