STOCKS NEWS SINGAPORE-Index flat; brokers favour Singapore REITS
Singapore shares were little changed, with several brokers saying they continue to favour the city-state's real estate investment trusts (REIT) as the sector continues to outperform.
The Straits Times Index was flat, while the MSCI index of Asia-Pacific shares outside Japan edged down 0.4 percent.
DBS Vickers said Singapore REITs' appetite for acquisitions remains strong with supportive equity markets and strong balance sheets.
"Developer-sponsored REITs can opportunistically tap their pipelines for growth," DBS said, adding that rising bond yields have limited impact on Singapore REITs as growth is being priced in.
Its picks are Fraser Commercial Trust, Cache Logistics Trust and Far East Hospitality Trust .
While Nomura attributes the outperformance of Singapore REITs to the recent results, it remains cautious at current valuations.
The brokerage said the yield curve has steepened and expects REITs' yield spreads to start rising.
Mapletree Greater China Commercial Trust will start trading at 2 p.m.(0600 GMT) after the trust manager raised S$1.6 billion ($1.28 billion) in its initial public offering at S$0.93 per unit.
1342 (0542 GMT)
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