Singapore Stock Market News

Property - Tapering delayed, so now what?

StockFanatic
Publish date: Fri, 20 Sep 2013, 11:24 PM
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The US Fed has postponed the tapering of monetary stimulus and this will have a positive near-term impact on S-REIT share prices. But we note that interest rates remain on an upward bias, and an aggressive investment stance on S-REITs may not be wise. We remain selective. Developers, another interest-rate sensitive sector, could be a better bet.

We remain Overweight on developers, preferring stocks with less residential and more diversified exposures. UOL, CapLand and GLP remain our key picks. We remain Neutral on S-REITs but highlight AREIT and SUN as our top picks to benefit from this positive event.

S-REITs that de-rated the most in the last three months could also rebound the most. These include KREIT, CDLHT and FCOT.
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