Singapore shares edged rose by midday on Friday as the last day of the first quarter saw fund managers “window dressing” their funds, analysts said.
The Straits Times Index <.FTSTI> was up 0.25%, or 7.39 points, at 3,001.48 midway into the trading session.
Big-cap gainers included Singapore Telecommunications and DBS Group Holdings -- the top two stocks traded by value.
“We are seeing a slight pickup of the STI as some of the portfolio managers are adjusting their portfolios,” SIAS Research’s lead analyst Ng Kian Teck said, adding that mainly blue chips were being traded.
Growth in Asia’s logistics sector will drive demand for portfolios of Mapletree Logistics Trust in the medium term, CIMB said, highlighting the firm as its preferred pick in the industrial Real Estate Investment Trust sector.
“Year-to-date, MLT has already achieved close to $400 million of acquisitions, surpassing our earlier forecast of $300 million. We believe there is more to come as management had earlier guided it is likely to buy assets from its sponsor this year,” the broker said in a note.
CIMB was upbeat on growth prospects in the three countries -- Malaysia, Japan and South Korea -- in which MLT recently acquired assets. CIMB raised its acquisition assumptions for 2012 to $500 million and expects 70% of the funding by perpetual securities and the remainder by debt.
“Within the industrial REIT space, MLT is our preferred pick for its limited volatility and predictable cash flows supported by long lease tenures and MNC tenants,” CIMB said.
Out of 15 brokers tracking MLT, 13 have a buy or strong buy and two have a hold rating, Reuters data shows.
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