Source : The Business Times, May 5, 2008
Units of Singapore Real Estate Investment Trusts (Reits) rose more than 3.5 per cent after Credit Suisse said it preferred the defensive nature of Reits to property developers.
Credit Suisse preferred Frasers Centrepoint Trust for its defensive suburban portfolio and ranks CapitaMall Trust as its top pick, citing long-term growth potential.
CapitaMall Trust, 27 per cent owned by CapitaLand, gained as much as 3.6 per cent to $3.75 (US$2.75) with over 3.3 million shares traded.
Frasers Centrepoint Trust, the property subsidiary of conglomerate Fraser and Neave, surged as much as 4.8 per cent to $1.30 with around 468,000 shares changing hands.
'We believe S-Reits face lesser downside risks to developers given higher income stability from rentals, longer lease tenures and greater dividends visibility,' Credit Suisse analyst Shirley Wong said in a client note.
Southeast Asia's largest property developer CapitaLand fell as much as 0.4 per cent to $7.06 while City Development, the region's second-largest developer, lost as much as 1.4 per cent to $12.32. -- REUTERS
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