Singapore’s Reits Index Plunges on Fears of Increasing Refinancing Costs

CEIC Macro Watch: The Singapore Exchange Real Estate Investment Trusts (REITs) index declined to 1,016.77 points (July 2002 = 100) during June 2013, while its corresponding market capitalisation declined to SGD54.57 billion. This is the index’s second consecutive decline since its peak in April 2013 when it stood at 1,180.73 points (corresponding to a market capitalisation of SGD63.37 billion). REITs tend to be highly sensitive to changes in interest rates, specifically in relation to the cost of refinancing. In recent months, expectations of higher interest rates, especially in the United States, have adversely affected the REITs performance. As of the end of June 2013, the yield on Singapore’s 10 year government securities rose to a high of 2.51% from 1.81% in May. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. By Ee Hoon Ng - CEIC Analyst Back to Blog
31st July 2013 Singapore’s Reits Index Plunges on Fears of Increasing Refinancing Costs

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