MONEY MASTER

Singapore’s REIT sector is facing renewed pressure, with the  S-REIT Index down around 6% year-to-date , as rising bond yields and geopolitical risks reduce investor appetite for yield-sensitive assets. Rising Yields Narrow REIT Appeal The selloff comes as  global bond yields trend higher , driven by inflation concerns linked to the Middle East conflict. Singapore’s  10-year government yield has risen about 20 basis points in March , reducing the relative attractiveness of REIT distributions. As a result,  yield spreads are tightening , making REITs less compelling compared to fixed-income alternatives. Energy Shock and Growth Risks Weigh on Sentiment The ongoing conflict is expected to: Disrupt  global energy supply Push  inflation higher Slow  economic growth These factors are weighing on REIT demand, particularly as the sector was only beginning to recover from the  previous interest rate hiking cycle . Defensive Large-Cap REITs Preferred RHB r...

Key Takeaway The Straits Times Index (STI) climbed to an all-time peak of  4,301.63  on Sept 4, extending its YTD gain to  +13.5% . Dovish global monetary expectations and supportive domestic policies are fueling momentum, with banks, telecoms, and S-REITs leading the charge. Market Drivers Global Tailwinds : Fed & ECB rate cut expectations driving flows into rate-sensitive assets. Policy Support : MAS’s  S$5B Securities Market Development Plan  boosting liquidity and investor confidence. Sector Rotation : Banks and REITs benefiting from narrowing yield spreads. Market Leaders (Last 20 Trading Days) Singtel (Z74.SG) : +9.5%, supported by yield appeal and FCF strength. YZJ Shipbuilding (BS6.SG) : +8.1%, on stronger order flows. Jardine C&C (C07.SG) : +7.6%, on rising consumer confidence. Banks (DBS, OCBC, UOB) : Contributed 0.6–1.4% each to STI’s latest 5-day rise as net interest margin outlook improves. Telecoms (Singtel, StarHub) : Defensive yields attr...

  Key Takeaways: A US federal appeals court struck down Trump’s global tariffs, raising legal and trade uncertainty. RHB expects falling yields to boost Singapore Reit demand, highlighting industrial and office names as top picks. Singapore’s import and export prices continued to fall in July, underscoring global trade softness. Nvidia and Tesla dragged US markets lower, while local counters such as CapitaLand Ascendas Reit, GuocoLand, and Oxley drew investor focus. Singapore Market Opens Lower Singapore equities began the week on a softer note, with the Straits Times Index (STI) slipping 0.37% to 4,253.89 at the open. Turnover reached S$110.4 million with 85 advancers against 64 decliners, reflecting cautious sentiment after Wall Street’s tech-led pullback. US Tariffs Struck Down, But Uncertainty Persists A federal appeals court ruled 7-4 against President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs. The court deemed the...

As we cross the halfway mark of 2025, Singapore’s REIT market continues to demonstrate its dual strengths—defensive income and thematic growth. Despite the US Federal Reserve maintaining rates, S-REITs have outperformed expectations, buoyed by declining domestic interest rates and resilient sector fundamentals. Top Performers YTD: Sector Themes Emerging Three names have led the S-REIT pack in 1H25, each anchored by different macroeconomic drivers: Frasers Hospitality Trust  YTD Gain: 21.4% | Yield: 3.10% Frasers Hospitality Trust is riding the  post-pandemic travel rebound . Improving occupancy and rising room rates have driven both earnings and investor sentiment. While the yield is lower than peers, capital gains reflect renewed confidence in global tourism. CapitaLand Integrated Commercial Trust (CICT)  YTD Gain: 13.8% | Yield: 5.0% As Singapore’s  flagship retail and office REIT , CICT benefits from consistent consumer footfall and strong leasing activity in Grad...