MAS review group initiatives to benefit banks, Reits in near term

DIVIDEND-PAYING players such as banks and real estate investment trusts (Reits) may gain in the near term from the first set of measures by the Monetary Authority of Singapore (MAS) to revitalise the local stock market, analysts said.

DBS, UOB and OCBC, which pay strong dividends, may see more allocations from new applicants to Singapore’s Global Investors Programme (GIP), given that these investors typically allocate to interest-earning asset classes, said Citi analyst Tan Yong Hong.

The Singapore banks can also become near-term defensive plays, against foreign exchange and earnings uncertainties among other regional banks, he added.

On Friday (Feb 21), the MAS review group announced that it will inject S$5 billion into a programme for fund managers to invest in Singapore equities in a bid to boost liquidity.

Among other moves, it also mandated new GIP applicants to allocate at least S$50 million of their assets under management to equities listed on Singapore-approved exchanges, when they set up their family offices.