Singapore’s STI headed south by 1.77% last Friday, following the speech by the Chief of Federal Reserves. This 1.77% is really a number compared to the sideways movement of STI that investors have seen in weeks. STI’s performance is in line with what other foreign bourses experiences. But unlike other southward movement of STI, I could see that REITs are affected as well last Friday. Many otherwise defensive REITs headed south by quite a large percentage. Even AIMSAMPI Reit also headed south by 5.191%. And this performance is replicated across the spectrum of REITs on SGX. The performance of the REITs last Friday is not surprising as according to the speech by Chief of Federal Reserves, investors somehow got the idea that low interest rates may be replaced by higher interest rates thus rendering REITs unattractive. On the other hand, Federal Reserves’ speech is also interpreted by ......
