S-Reits rebound after Fed holds rates for now

Singapore

AS has been the case each time an anticipated rate increase turned out to be another false alarm, real estate investment trusts (Reits) enjoyed some boost after the US Federal Reserve kept interest rates unchanged.

The FTSE ST Reits Index rose as much as 2.5 per cent in the morning, before ending at 694.15, up 0.5 per cent. This outdid the Straits Times Index, which fell 0.6 per cent to 2,879.59.

Federal Reserve chair Janet Yellen had said she is keeping the doors open for a rate hike in October, but analysts think it unlikely as there will be insufficient data to materially change the Fed officials' prevailing views. Most an…