The milestone comes after the US Federal Reserve (US Fed) cut its interest rates by 50 basis points (bps), offering space for Asian markets to follow suit. Singapore is seen as a major beneficiary given the abundance of interest-rate sensitive REITs in the market.
Singapore stocks climbed to their highest level since 2007 as the prospect of lower interest rates lifted the city-state’s real estate investment trusts, and boosted the appeal of the high-yielding market.
The benchmark Straits Times Index (STI) closed 1.1% higher on Thursday, taking its year-to-date gains to 12%. Much of the advance was driven by REITs, which are getting a boost from potentially lower rates. Meanwhile, banking shares have performed well thanks to strong dividend expectations and solid loan growth.
