See: Jardine Matheson Holdings to acquire remaining stake in Jardine Strategic for US$5.5 bil; Jardine Strategic shareholders to receive US$33 per share
This based on the size of FLCT’s free-float and market-cap, which stands at $3.2 billion as at March 5. “While the appetite for REITs could diminish on the back of steepening yield curve, we continue to like FLCT (as one of our country top picks) for visible inorganic growth potential and income resilience,” she writes in a March 8 flash note. “If included, we estimate FLCT’s weight in [the] STI to be 1.1%. We like it for its exposure to the logistics warehouse sector that will continue to ride on the e-commerce uptrend as well as its visible inorganic growth potential,” she adds.
For more stories about where the money flows, click here for our Capital section
Separately, Lim also notes that other companies under the STI reserve list are Frasers Centrepoint Trust (FCT), Keppel REIT, Suntec REIT and Netlink NBN Trust, based on market cap size. On that, Keppel REIT could be a candidate based on a three-month ADV of $12.1 million. Her end-2021 STI target remains at 3,140 points, still based on 14.2 times 12-month forward price-to-earnings (P/E). “Our large-cap picks are CapitaLand (CAPL), Venture Corporation (VMS), SembCorp Industries (SCI), Yangzijiang (YZJ), Ascendas REIT (AREIT), Frasers Centrepoint Trust (FCT), FLCT, ST Engineering, ThaiBev, and UOB. Our small-cap picks are Propnex, BRC Asia, BOCS, CSE, HRNet, Japfa, and Koufu,” she says. As at 9.39am, the STI is trading 1.14% up at 3,106.10. Shares in Jardine Matheson and Jardine Strategic are trading at US$65.33 and US$32.80 respectively.