Ascott Residence Trust (A68U.SG) turns higher, last +1.7% at $1.17 vs down 2.6% at $1.12 earlier, drawing strength from broad market uptick, according to Dow Jones.

“Concerns of dilution and Ascott taking on more risk have been discounted. While having a big exposure to Europe will mean increased forex and operating risks, these have already been captured after the share price fall last month,” says a dealer at local brokerage.

REIT down as much as 7.5% since fund-raising to buy 28 properties from parent Ascott Group announced in August. ART has so far raised $453.2 million from private placement of 419.7 million new units at $1.08 each.

“The issue price of $1.08 for the private placement units is in line with our expectations,” says UOB KayHian analyst Vikrant Pandey. Another 67.9 million new units will be sold from Sept 24 at $1.07 each under preferential offering. Immediate resistance at current $1.19 September high.