Given the increased vagaries in the macroeconomic landscape, the analysts believe more investors may seek shelter in defensive instruments such as S-REITs, although it would not be immune to a slowdown or contraction in economic activities.
Despite seeing tactical opportunities for the S-REITs sector, OCBC Investment Research (OIR) analysts remain selective, citing persisting market headwinds.
In its latest house view, OIR expects the US Federal Reserve to pause its rate hikes after one last 25 basis points increase in May, followed by the start of rate cuts from March 2024.
