- FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 723.18 to 725.07 (0.26%) compared to last month’s update. The REIT Index has rebounded from the sell-off in September and October and since early November has been within the range of 714 and 742. It has been moving sideways for the past 2 months. This is a typical flag pattern after a strong move.
- Yield spread (in reference to the 10-year Singapore government bond yield of 3.11% as of 30th December 2022) widened from 4.61% to 4.69%. This is a slight increase of 0.08% due to the share price erosion outpaces in the increase of the risk-free rate.
Technical analysis
Technical analysis
Technically, FTSE ST REIT Index is trading in a bearish territory but rebounded strongly from the support level. The index is forming a flag pattern (either bull flag or bear flag) and future direction is unknown until the breakout. Breaking up from the flag pattern shows the continuation of the bullish rebound. However, breaking down from the flag pattern indicates the previous rebound is just a dead cat bounce and the REIT index may crash down to test the support of 665 level.
