- Following the initial negative knee-jerk share price reaction after US President Trump’s ‘Liberation Day’ tariff announcements on 2 Apr 2025, global equities including S-REITs share prices have seen a meaningful rebound. This has been further supported by the announcement that the US and China will be rolling back a significant portion of their tariffs on each other for 90 days as they continue trade talks.
Share prices rebounded from lows but volatility likely to stay.
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- Comparatively, the FSTREI has underperformed the Straits Times Index and MSCI Singapore Index, which have delivered total returns of 4.3% and 11.0% year-to-date respectively.
S-REITs sector saw net institutional outflows of S$494.7m in year-to-date.
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- Interestingly, during the week of 7, 14 and 21 Apr 2025 which were periods of heightened uncertainties over the tariffs situation and increased market volatility, the S-REITs sector garnered net outflows of S$54.7m, S$3.5m and S$47.6m from institutional investors respectively.
- One would typically think that S-REITs would be perceived as a defensive sector during periods of heightened uncertainties, but institutional investors instead sought shelter in sectors such as telcos and consumer non-cyclicals and even the industrial sector which is deemed to be more cyclical. See weekly fund flow data and charts at SGX fund flow by sector.
- However, institutional investors net bought S$3.4m and S$0.8m of S-REITs for the week of 28 Apr and 5 May 2025, while sectors such as industrials, telcos, consumer cyclicals, and real estate excluding REITs also saw net inflows from institutional investors during both of those weeks.
1Q25 results review: DPU still under pressure though mostly in-line with expectations.
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