Reits dim as hopes fade of big Fed cut

DIMINISHED hopes of a sizeable interest rate cut by the US Federal Reserve at month's end continued to hinder local equities, with the effect most pronounced on real esate investment trusts (Reits).

The shine has come off most Reits in Singapore, with the iEdge S-Reit 20 Index losing 24.19 points or 1.7 per cent to 1,445.77 at Tuesday's close.

Reits have, in recent weeks, been rallying strongly on market expectations of dovish central banks, with many reaching "expensive" valuations.

Last week, news that the Monetary Authority of Singapore was considering raising the current leverage limit for Reits, sent them even higher - only for last Friday's strong US jobs data putting an end to the r…