Overall, Singapore REITs have reported a decent growth rate of 5.0% in distributions for the second quarter of 2017, with an 8.0% year on year growth in net property income.
After suffering from weakness in tourist arrivals and rising supply of hotels, the hospitality sector in Singapore seems to be on track for recovery this year. Several demand drivers are in place that will be beneficial towards the sector.
Since the start of the year, STI has gained 12 percent with many heavyweight component stocks returning to their mid-cycle level valuations. How should investors invest in 2H17?
In our previous article, we highlighted the ‘Yay’ and ‘Nay’ sectors that investors should invest in or avoid in the Singapore market. In this article, we will look at the four alpha picks that CIMB Research recommends going into 2H17.
Since the discovery of the first case of locally-transmitted Zika on August 28th, the virus is spreading across Singapore rapidly. To make matters worse, the lack of vaccine and specific treatment for the virus makes it hard to prevent or contain the situation.
The Federal Open Market Committee (FOMC) July meeting minutes released showed that members were divided over the urgency to hike rates. Some officials were expecting inflation to remain low in the near term, while others believed that the US labour market conditions were at or close to full employment.
The global hunt for yield is on. The bond market has not been great for investors seeking fixed passive income for lower risks. Benchmark government bond yields have hovered in the 1-2 percent region. With greater uncertainty in the future, benchmark yield rates are at risk of falling lower.
Singapore has been hit by a rough patch of tourist drought in 2014 due to macro events. However, DBS’ data shows that the tourism sector is expected to be nearing a bottom as tourist arrivals from key markets recover.
With the US rate hike looming, there has been a sell down in S-REITs, which seems to present interesting value for investors.
Asian markets have been hit by an onslaught of recent waves of bad news as primary concerns in the US and China continue to fuel market volatility.