KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Singapore’s sluggish initial public offering (IPO) market is looking for a much-needed revival, with real estate investment trusts (REITs) expected to lead the charge in 2025. One potential standout is Nippon Telegraph & Telephone Corp (NTT), which is considering a data-center REIT listing that could be worth as much as US$1 billion. This would be a major boost to the Singapore Exchange (SGX), which is on track for its worst IPO year in over 25 years, with just one IPO recorded so far in 2024.
The REIT sector has shown signs of recovery, with Singapore-based real estate trusts rising 14% during the third quarter of 2024. A global decline in interest rates has made the sector more attractive to investors by lowering borrowing costs and boosting dividend yields. This trend is expected to fuel more fundraising and investor interest in REITs, potentially creating a virtuous cycle for new listings.
“We are constructive on the equity capital markets in Singapore for the fourth quarter and onwards,” said Mrinal Parekh, head of equity capital markets for Southeast Asia and India at BNP Paribas. He noted that investors have already started inquiring about REIT opportunities.
The potential US$1 billion NTT listing would be Singapore’s largest since Netlink NBN Trust’s IPO raised US$1.7 billion in 2017. Data centers are particularly attractive to investors, thanks to the growing artificial intelligence sector, with tenants likely to maintain their leases due to the high costs of relocating.
In September, CapitaLand Integrated Commercial Trust, a major player in the REIT space, raised S$1.1 billion to acquire a 50% interest in a high-end Singapore mall, further illustrating the sector’s growing influence in revitalizing Singapore’s equity capital markets.
Comments
Post a Comment