Shares in China tumbled from their two-week highs after the Chinese government indicated that it will pull the plug on credit to industries that are currently facing over capacity issues. Markets in Asia responded by sliding to their lowest levels in weeks. Singapore's benchmark Straits Times Index closed the day lower by 0.45 percent to end at 3155.
|Singapore REITs enjoyed a promising start in early 2013 but have now fallen by a total of 6 percent year to date.|
However the damage was significantly larger for the frothy Singapore REITs market as heavyweights such as Ascendas REIT tumbling to their lowest levels since 23 July 2012. The FTSE ST Real Estate Index, largely seen as a barometer of Singapore REITs, tumbled by 1.63 percent to close at 734 points. The top 10 losers for the day are tabulated as follows:
|REIT||Last||Drop (S$)||% Drop|
|Frasers Commercial Trust||1.330||-0.045||-3.27|
|Mapletree Commercial Trust||1.150||-0.035||-2.95|
|Starhill Global REIT||0.830||-0.025||-2.92|
|Frasers Centrepoint Trust||1.840||-0.055||-2.90|
|Cambridge Industrial Trust||0.710||-0.020||-2.74|
|AIMS AMP Industrial Trust||1.585||-0.040||-2.46|
In the near term, Singapore REITs are facing a risk of tighter monetary policies by the US Federal Reserve and the Chinese Central Bank. Should current liquidity levels taper down, the nation state could be seeing capital outflows from the property market, further weighing down on REITs for a foreseeable future.