Singapore REITs – monthly update – The Property Chronicle
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Singapore REITs – monthly update

The Analyst

  • FTSE ST REIT Index decreased slightly from 854.51 to 822.03 (-3.80%) on the month update.
  • REIT Index has rebounded by about 45% as of 21 September from the bottom on 23 March 2020.
  • Yield spread (reference to 10-year Singapore government bond of 1.0%) has widen slightly from 5.608% to 5.82%.
  • The risk premium is still attractive to accumulate Singapore REITs in stages to lock in the current price and long-term yield after the recovery.
  • Technically the REIT Index is currently trading on sideways consolidation with low volatility until the breakout. The breakout may happen in the current earning season in October. Current macro factors such as low interest rate environment and recovery of global economic support the bullish breakout.

Technical analysis 

The FTSE ST REIT Index decreased slightly from 854.51 to 822.03 (-3.80%) compared with last month’s update. The REIT Index has rebounded by about 45% as of 21 September from the bottom on 23 March 2020.

Currently the REIT Index is trading on sideway consolidation, sandwiched between a very tight range between 817 support and 871 resistance. There is a Bollinger Band Squeeze with very tight range and low volatility on the FTSE ST REIT Index. The index could start a big move in either direction.

There was a false Golden Cross 20D/50D/200D SMA breakout and an inability to kick-start the uptrend of the REIT Index. Currently the REIT index is trading near to the critical support level at about 817.

As for now, the short-term direction is sideways, until breakout of the resistance (starts an up-trend) or breakdown of the support (starts a down-trend).






The Analyst

About Kenny Loh

Kenny Loh

Kenny Loh is a senior consultant and REITs specialist at Singapore’s top independent financial adviser. He is also a certified financial planner, REIT trainer for the Singapore Exchange, and a certified trainer by the Institute of Banking and Finance Singapore. His personal investment blog is at http://mystocksinvesting.com.

Articles by Kenny Loh

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