Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)

Units of Singapore-listed Indonesian retail REIT Lippo Malls Indonesia Retail Trust (LMIRT) (SGX:D5IU) advanced by 2.89% on 1 April after signs indicate that the IDR has strengthened the most in a week against the USD.

Data compiled by financial company Bloomberg shows that the IDR has gained 0.3 percent, the most since March 24, to close at 13,042 per USD on 1 April. This after official inflation numbers came in lower than expected, which generally bode well for retailers.

Cumulating the effect was positive manufacturing data from China which is a major market for Indonesian exporters.

China’s official purchasing managers’ index stands at 50.1 in March 2015 as compared to 49.9 in February the same year. A reading of above 50 signal manufacturing expansion.

Units of LMIRT last changed hands on the Singapore Exchange at SGD0.35.

Acquisition of Lippo Mall Kemang is set to increase Lippo Malls Indonesia Retail Trust's portfolio value by more than 20%.
Acquisition of Lippo Mall Kemang is set to increase Lippo Malls Indonesia Retail Trust's portfolio value by more than 20%.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.