Investing Updates : Is STI increasingly a REIT index?

Source : 

https://drwealth.com/is-sti-increasingly-a-reit-index/

Apple Intelligence : 

• STI Composition: The Straits Times Index (STI) is still dominated by banks, but REITs are gaining ground.

• REITs in STI: REITs currently account for 10% of the STI’s weightage and will increase with the inclusion of Keppel DC REIT.

• Investor Sentiment: The increasing weightage of REITs in the STI reflects investor confidence in the sector.

• STI Composition: The STI will include eight REITs out of 30 constituents, with real estate-linked counters making up approximately 14.71% of the index’s weightage.

• Singapore’s Economy: Singapore’s economy is heavily influenced by real estate, with a mature REIT sector and a land-scarce environment.

• Investor Sentiment: Despite the global rise of technology stocks, the STI’s skew towards financials and real estate reflects investor preferences and the economic realities of Singapore.

• Investor Preference: Singaporean investors, particularly retail ones, favor income-generating assets like REITs and bank stocks for their dividends and defensive nature.

• Future Trend: REITs are expected to gain a larger proportion of the STI’s weight due to falling interest rates and a focus on consumption, while banks may experience mean reversion due to high valuations and decreasing interest rates.

• REIT Expansion: Capitaland Investment and Link REIT are expanding their REIT offerings, providing Singaporean investors with more options in high-quality REITs globally.