PETALING JAYA: AmInvestment Bank Research sees buying opportunities in local real estate investment trust (REIT) stocks, given widening yield spreads against 10-year Malaysian Government Securities (MGS), supported by appealing distribution yields of 6% to 8%.
With the monetary policy tightening coming to a tail-end, it said developed economies could potentially cut interest rates in the second half of 2024 (2H24).
“Our in-house economist anticipates the (United States) Fed fund rate to peak at current levels of 5.25% to 5.5%. Our economics team also expects the Fed to start cutting interest rates in mid-2024 by 75 to 100 basis points (bps), which will eventually bring the Fed funds rate to 4.5% to 4.75% by end- 2024.
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