The Week In Numbers Are REITs A Buy?

Brokers can’t agree on the outlook for Singapore’s Real Estate Investment Trusts. Some are concerned by the impact that the Fed’s interest-rate decision next month could have on S-REITs. But one broker said REITs tend to underperform in period of high growth and low inflation. Inflation in Singapore is expected to rise from 1% this year to between 1% and 2% next year.

Some of the biggest fallers this month include Mapletree Industrial Trust (SGX: ME8U) and CapitaLand Commercial Trust (SGX: C61U).

Fullerton Healthcare Corp has had to put its floatation on ice. The managed-care provider was hoping to raise around S$300 million through the Initial Public Offering. But this had to be delayed because of anonymous letters that raised questions about the company’s business model.

It seems that global funds sold about US$1 billion of equities and bonds in Asia’s emerging markets after Donald Trump’s victory in the US elections. India bore the brunt of the outflows, followed by Thailand.

Bond traders reckon that an interest-rate hike by the Fed is a dead-cert next month. The market’s implied odds of a hike by the US central bank reached 100% for the first time, as speculation mounts that Trump policies will mean a faster pace of tightening.

And finally, Chinese innovators filed more than 1 million patents in 2015. It was the first country to do so in a single year. Most of the applications were in electrical engineering that includes telecoms, followed by computer technology and semiconductors.

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