The Straits Times Index (SGX: ^STI) experienced a slight pullback last week, following its 17-year high the previous week. The decline was largely attributed to geopolitical tensions in the Middle East, which negatively impacted both Wall Street and European markets. Despite this, the STI closed at a respectable 3,589.13 on 4 October.
The third quarter of 2024 witnessed a remarkable surge in REIT performance, driven by optimistic investor sentiment surrounding interest rate cuts. According to The Business Times, US office REITs, such as Keppel Pacific Oak US REIT (SGX: CMOU), led the charge with substantial gains. Local office REITs like Suntec REIT (SGX: T82U) and OUE REIT (SGX: TS0U) also demonstrated impressive growth. Additionally, REITs with overseas assets, including those focused on China such as Capitaland China Trust (SGX: AU8U) and United Hampshire REIT (SGX: ODBU) outperformed.
Seatrium Ltd (SGX: 5E2) shares experienced a significant increase on Friday, closing at S$1.99, a 12.4% rise. Meanwhile, Hong Kong Land Holdings Ltd (SGX: H78) reached a 52-week high on the same day, closing at $3.93.
Over at Wall Street, despite initial market fluctuations caused by President Biden’s comments on Israel and Iran, US stocks closed Friday near session highs. A strong jobs report reinforced the US economy’s resilience, bolstering hopes for a soft economic landing.
Chinese stocks in the Hong Kong stock market saw their best performance since 2007. Bloomberg reported that the Hang Seng China Enterprises Index has seen a remarkable 36% increase since its recent low. This surge is primarily attributed to Beijing’s announcement of a significant stimulus package on September 24th. E-commerce companies like Meituan (HKSE: 3690) and Alibaba Group Holding Ltd. (HKSE: 9988) played a pivotal role in driving the index’s gains, gaining 33.4% and 11.9% respectively last week.
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Disclosure: Joanna Sng owns shares of Capitaland China Trust, Meituan, and Alibaba.
