- FTSE ST REIT Index increased slightly from 835.40 to 854.51 (+2.28%) on the month update.
- REIT Index has rebounded circa 45% as of 12 September from the bottom on 23 March 2020.
- Yield spread (reference to ten-year Singapore government bond of 0.882%) has decreased slightly from 5.665% to 5.608%.
- 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 coming earning season, which starts this October. Current macro factors such as the low interest rate environment and the recovery of global economic support the bullish breakout.
Currently the REIT index is trading on sideways consolidation, sandwiched between a very tight range between 817 support and 854 resistance. There is a Bollinger Band Squeeze with very tight range and low volatility on FTSE ST REIT Index. The index could begin a big move in either direction.
There is a Golden Cross of 20D SMA above 200D SMA and the REIT index has moved above all the three moving averages.
As for now, the short-term direction is sideways and up (if REIT index can stay above all the three moving averages of 20D/50D/200D.