Despite the backdrop of interest rate hike cycle from the Fed, S-REITs managed to make a good year-to-date run. Total return of S-REITs was 24.9 percent year-to-date, according to CIMB. The sector’s strong performance was due to the narrowing of yield and yield spread.
The offshore and marine (O&M) sector has been overlooked for most of 2017 as negative sentiments gripped the market owing to the low oil price. However, with oil prices recovering year-to-date, CIMB believes that it is time to review the sector. According to CIMB, the O&M sector is prime for a re-rating.
The US Senate and House of Representatives have already presented their own version of the long-awaited tax reform bill and key differences were reconciled in the conference committee. The final tax bill is now one House vote away before it becomes official.
Over the last fortnight, Prime Minister Lee Hsien Loong raised the topic on increasing taxes during the People’s Action Party Convention. Some years back, Lee had also mentioned about the need to implement higher taxes in Singapore.
As the property market makes its recovery, many investors will want to make use of this opportunity to increase their investment in the property and REIT sector. This is in-line with UOB Research’s 2018 strategy as they recommend investors to maintain overweight in this industry, especially so for “stocks with exposure to the residential, hotel and office segments” as these are expected to be the star performers.
As of October 31, 2017, Asia Pacific REITs have recorded a total return of 5.3%. Among the four major REIT markets, Singapore has the best performance, returning 22% in local dollar terms. It is often said tha...
On 19 October 2017, Hong Kong stocks turned sharply lower and the Hang Seng Index (HSI) shed 2.2 percent for the day. Following the biggest tumble this year, the HSI continued to advance, but slumped again at the open on 6 November 2017.