The counters are likely to move up when there is greater clarity on rate cuts under the Trump administration and the broader macroeconomic environment
INVESTORS of Singapore-listed real estate investment trusts, or S-Reits, would have had their bubbles burst after former United States president Donald Trump won the latest presidential elections in the country.
Close to two-thirds of S-Reits and business trusts listed on the Singapore Exchange (SGX) ended lower a day after the results, amid jitters that Trump’s policies will raise inflationary pressure on the US economy and lead to a slowdown in interest rate cuts by the Federal Reserve.
Trump’s re-election has dashed the hopes of investors, who had otherwise been anticipating the tide to turn for S-Reits after the US Federal Reserve finally cut interest rates last month. With the Fed indicating more cuts to come later this year and next, investors had been hopeful that S-Reits would finally see some easing in their cost pressures.
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