Chart of the Day: Check out SREITs' historical spread versus Asian peers

And the 2 big factors behind correction.

According to OCBC, there are two key factors driving the dramatic correction in the S-REITs sector over the last two weeks. 

First, increased expectations that the Federal Reserve could taper its bond purchases as early as 2H13; and secondly, the market going into opportunistic profit-taking on the back of a strong performance over 2012-13.

Here's more from OCBC:

At this juncture, however, we see the selling to be overdone. The S-REITs sector has nearly relinquished all of its YTD gains; the FSTREI was up 13.5% YTD on 15 May 2013 is now up only 1.6% YTD as at 3 Jun 2013.

We would now selectively bargain hunt for REITs with firm fundamentals and good potential for DPU growth. 

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