Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Wed, 14 Nov 2018, 09:14 AM

 

Singapore REITs: Expect Continued Gradual Interest Rate Hikes

Author:   |    Publish date:


In what could be Janet Yellen’s last public appearance before Congress as the Federal Reserve Chairperson, she highlighted the Committee’s opinion that the U.S. economy will continue its expansion and there could be increased traction in wage growth as the labour market strengthens further.

She also downplayed concerns over the relatively high asset valuations, pointing out that “overall vulnerabilities in the financial sector appear moderate”. As such, the fed funds rate will likely continue to be raised gradually.

Notwithstanding the likelihood of a higher interest rate environment ahead, the S-REITs have sought to mitigate their interest rate risks by hedging ~74% of their borrowings, based on the REITs under our coverage.

In our strategy report published yesterday, we highlighted Frasers Centrepoint Trust [BUY; FV: S$2.40], Frasers Logistics & Industrial Trust [BUY; FV: S$1.25], Mapletree Greater China Commercial Trust [BUY; FV: S$1.28] and Mapletree Logistics Trust [BUY; FV: S$1.35] as our preferred sector picks for 2018.

We are NEUTRAL on the broader S-REITs sector.

Source: OCBC Research - 1 Dec 2017

Share this

  Be the first to like this.
 


 

133  179  172  607 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 HSI26400MBeCW.. 0.10-0.018 
 HSI25400MBePW.. 0.1610.00 
 HSI24400MBePW.. 0.089+0.01 
 Cordlife 0.475+0.055 
 Asian Pay Tv Tr 0.16-0.155 
 HSI26600MBeCW.. 0.038-0.017 
 HSI23200MBePW.. 0.086+0.008 
 HSI26800MBeCW.. 0.141-0.015 
 HSI27600MBeCW.. 0.0810.00 
 HSI27200MBeCW.. 0.07-0.014 
Partners & Brokers