Unit Price Performance
The Singapore equity market and the
Singapore real estate investment trust
(S-REIT) sector rebounded strongly
after hitting their lows in March 2009.
Investor confidence and capital flows
returned gradually on cautious
optimism of improving economic
prospects and credit market conditions
as the unprecedented concerted
efforts by Asian governments in
implementing monetary and fiscal
stimulus measures to boost their
economies took effect. As the
Singapore economy emerged from
recession, the Singapore stock market
ended the year higher at 2,897.6, up
64.5% from 31 December 2008 while
the FTSE ST Real Estate Investment
Trust index rose by 69.4% year-on-year.
K-REIT Asia's unit closing price
recovered from its low of $0.49
in March 2009 and moved uptrend
to reach a one-year high of $1.24 in
September before closing at $1.10
as at 31 December 2009. Investor
sentiments were lifted by signs of
economic recovery and stabilisation
of the office market. S-REITs remained
an attractive investment vehicle, given
their relatively stable and favourable
yields as compared to other
investment instruments.
K-REIT Asia's market capitalisation
crossed the $1.0 billion mark following
the one-for-one rights issue which was
completed in November 2009. Its
trading liquidity improved as the
average daily volume more than
doubled from about 0.5 million units
in the third quarter of 2009 to about
1.2 million units in the fourth quarter
of 2009. Trading volume rose by about
46.0% to 176.3 million units for the
whole of 2009 compared with
120.8 million units in 2008.
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