- The “BUY SG banks” and “SELL S-REITs” theme has been playing out through the course of 2024 and appears to remain in favour since the start of 2025.
- Based on our observations of recent share price movements and discussions with clients, it appears this trade remains the consensus position, and for good reason.
Is the ‘Long banks, Sell REITs’ strategy on its last leg?
- - Read this at SGinvestors.io -
- US macro data (jobs, inflation, etc.) will serve as a barometer of the continuation or unwinding of the current market positioning between SG banks and S-REITs. In fact, over two periods (Oct 23-Dec 23 and Aug 24-Dec 24), dovish shifts in interest rate expectations led to a significant rebound in S-REITs share prices (by up to 13%-17%) over a short period of time, as investors flocked to REITs. The short and sharp rebound could be attributable to the unwinding of the “long banks, sell REITs” pair trade, especially among short-term investors.
- - Read this at SGinvestors.io -
How do total returns compare?
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Derek TAN NA DBS Group Research | Rui Wen LIM DBS Group Research | Dale LAI DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-01-20
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