What Looks Attractive In This Correction? REITs?
S-Reits have been upgraded by JPM while Singapore banks have been downgraded from Overweight to Neutral.
JPM analysts have upgraded their outlook on S-Reits. They cite catalysts being a declining interest rate environment and visibility on distribution per unit (DPU) growth.
They have upgraded S-Reits from Underweight to Neutral.
This comes as US yields are declining in fear of a Trumpcession and pricing in the prospect of 3 rate cuts this year. US 10 year yield has declined from 4.8% to about 4.1%.
At the same time, due to a lower rate environment, JPM is downgrading Singapore banks from Overweight to Neutral.
DBS Group Research has also said it is more constructive on S-Reits at 0.8x price to book ratio and FY2025 yields of 6.2%.
DBS also says it expects a shift in earnings trend for S-Reits to become earlier than late 2025.
The S-Reits CFA ETF has been trading up 3.43% since the correction in the US began.
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