SG Morning Highlights | S-REITs Poised for Better Year Ahead with Rate Cuts and Improving Economy

Advancers / Decliners is 48 to 67, with 33.89 million securities worth S$36.04 million changing hands.

Singapore-listed REITs are expected to outperform this year, following a challenging 2023, due to improving economic prospects and the Federal Reserve's earlier-than-expected rate cut signals, according to RHB. The bank's equity analyst, Vijay Natarajan, noted that S-REITs focused on office and hospitality assets are well-positioned to capitalize on the improving market conditions and strong economic growth projections for Singapore this year.

Natarajan also expects institutional investors to return to the S-REIT market this year, further boosting the sector's recovery later in the year. RHB maintained an "overweight" rating on S-REITs, with CapitaLand Ascendas REIT, Keppel REIT, AIMS APAC REIT, and CDL Hospitality Trusts as its top picks.

Singapore's financial regulator has partnered with members of the financial industry to establish the Singapore Sustainable Finance Association (SSFA), the first cross-sectoral industry body to support the development of Singapore as a leading global center for sustainable finance. The SSFA aims to drive the development of Singapore's sustainable finance ecosystem, promote best sustainable finance practices, and facilitate collaboration between financial and non-financial sectors to support the low-carbon transition and sustainable economic growth of Singapore and the region. The establishment of the SSFA, which will begin its work in 2Q2024, marks a pivotal moment in Singapore's sustainable finance journey, according to Gillian Tan, assistant managing director and chief sustainability officer at the Monetary Authority of Singapore.