$Suntec Reit(T82U.SG)
Context:
Finally the much-feared hammer has dropped. US Fed has annnounced a 25bps increase in interest rate to 3.75-4%, the first in 3 years. Warsh did not give his opinion as to whether it is a one-time thing or the first of more to come but 16 other Fed governors have forecasted one more rate hike in 2026.
We have seen how this played out before. Reits will trend down until the tide turns. How long it can last is the question. It can be an opportunity to pick up some bargains. Suntec Reit’s price broke below 1.39 today so the next support level is 1.34 followed by 1.29.
My Trade: Continue to monitor the situation and find opportunities to average down or trim the position.
Takeaway: The first rate hike in 3 year means reits will continue to be under pressure. It also presents an opportunity to pick up some bargains.
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