A report by Businessweek said Singapore business and real estate trust (REIT) had opened poorly in the Singaporean stock exchange. The report attribute the REIT's poor performance due to concerns that interest rates would increase.

At 2PM local time, Viva Industrials opened at a low SGD0.765 per share. The price per share was 1.9% lower than initial offering price of SGD0.78 per share. Despite fluctuating activity, the shares had closed at the same price per share it opened. Viva Industrial had raised SGD365 million or USD294 million in its share sale, which counted Chinese property tycoon Tong Jinquan as one of its investors.

According to Fitch Ratings, local REITs in Singapore would be facing refinancing risks should borrowing costs would rise as an effect stemming from the US's bond-buying program decision.

UOB Kay Hian Pte analyst Vikrant Pandey said, "REITs are not in favor now. There was the U.S. news that the Fed tapering is not off the cards yet so in such an environment where interest rates are expected to rise, REITs will be out of favor."