Source: Mapletree Commercial Trust homepage
Hutchison Port Holdings Trust (HPH) will be excluded from the Straits Times Index (STI) due to its poor performance
Mapletree Commercial Trust (MCT) is selected to replace HPH as one of key components of STI
In the recent STI review, MCT is selected from the reserve list to replace HPH as one of the component stocks of the index. The changes will take effect in late September. In terms of weightage, MCT will take up about 1.5% of the total index. In the next few weeks, we would see some buying demand on MCT as all the Exchange Traded Funds (ETFs), Trusts or Hedge Funds that track the STI index or overall Singapore market would rebalance their portfolios to include MCT in their portfolios.
In the past few years, REIT has been the outperforming sector in the Singapore market. After the recent review, MCT will be the 4th REIT that will be included into the STI. It is one of the top performing REITs in Singapore, delivering consistent dividend growth over the years. Its core portfolio, VivoCity continues to enjoy positive rental reversion and high occupancy rate.
Technical wise, MCT has been very bullish, with upcoming buying demand from the funds, we would continue to see further upside on the price. It is one of the key REITs for our corporate action strategy.