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The Singapore Market This Week

StockMarketBoardThis week the Straits Times Index (SGX: ^STI) gained 117 points, or 3.8%, to close at 3,237 points.

On Thursday after Ben Bernanke surprised the market by announcing that the US Federal Reserve will not taper its monetary stimulus, the STI gained 1.8%. The FTSE ST Real Estate Investment Trust Index (SGX: FSTAS8670) went up even more – up 2.7%. REITs such as Suntec REIT (SGX: T82U), Parkway Life Real Estate Investment Trust (SGX: C2PU) and Ascendas Real Estate Investment Trust (SGX: A17U) surged 8.7%, 8.6% and 5.4% respectively.

REITs were noticeable laggards over the past few months due to concerns over the impending tapering that, in the end, did not materialise. An interest rate rise could mean that REITs might have to pay higher interest on their loans and this could impact distributions to unit holders.

The inaction of the Fed does not mean that it will not reduce its massive bond-buying program. St. Louis’ Fed President, James Bullard, said on Friday that the Fed could still scale back its massive bond-buying program at an October meeting, should the economy become stronger.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.