Reits retreat as Fed statement raises rate fears

THERE were two events this week worth discussing - the US Federal Reserve's first Federal Open Market Committee (FOMC) meeting of 2015 and the Monetary Authority of Singapore's (MAS's) move on the currency front to reduce the slope of its policy band that has led to the Singapore dollar (SGD) weakening.

However, although both were in theory negative for stocks, the Straits Times Index managed to hold reasonably firm during the week, falling first on Monday after news that Greece's parliamentary elections had been won by the Syriza party and on Friday, probably in anticipation of Wall Street weakness.

That latter selloff was notable as it involved many Reits, instruments that are less attractive if interest rates are expected to rise. The selling took the Straits Times Index down 27.85 points or 0.81 per cent to 3,391.20, resulting in a loss for the week of 20 points.