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Investors flock to gold miners, Reits, telcos amid Brexit-led volatility
IN the aftermath of Brexit that has rattled global markets, investors in the local bourse have flocked to gold mining stocks, telcos and real estate investment trusts (Reits).
In the key Straits Times Index, telecommunication services was the strongest sector on Monday with Singtel and StarHub gaining 1.8 per cent and 1.1 per cent respectively, said Singapore Exchange's investor education portal My Gateway.
Both stocks continued their gains in Tuesday's trading with StarHub advancing 13 Singapore cents or 3.63 per cent to S$3.71 and Singtel up seven Singapore cents or 1.8 per cent at S$3.96 as at 12.22pm.
According to My Gateway, nine of the 10 stocks that saw the biggest jump in trading volumes on Monday compared to their three-month average volume comprised gold mining stocks, Reits and those engaged in significant corporate activity.
These stocks notched up an average price gain of 2.4 per cent over Monday's session, led by CNMC Goldmine Holding's 9.7 per cent rise and a one per cent decline in Keppel Reit.
DBS Group Holdings, which declined 1.6 per cent, was also among the 10 stocks that saw a big spike in volume.
The six Reits are Suntec Reit, Keppel Reit, Mapletree Commercial Trust, Ascott Residence Trust, CapitaLand Mall Trust and CapitaLand Commercial Trust. Aside from Ascott Residence Trust, these Reits derive a majority of their revenue from Singapore.
For more coverage of the EU referendum, visit bt.sg/BrexiT