Market Review
and Outlook
Sustained Returns amidst Global
Uncertainty
2015 saw greater volatility in the global financial
market, largely attributed to slowing performance in
major emerging economies, falling commodity prices
and unstable liquidity conditions
1
. In the early part of
2015, the potential default situation in Greece led the
global financial market into a frenzy but the crisis was
temporarily averted after Greece accepted a bailout deal
amounting up to €86 billion
2
. From the US, uncertainty
and speculation over Fed rate hikes bred a mounting
sense of apprehension over the health of the global
economy before the rate was eventually increased
towards the end of 2015. With its prudent capital and
financial strategies put in place during 2015, PLife REIT
remained well cushioned against the volatile financial
market.
Asia markets which are led by China and India had a
strong first quarter in 2015 but the region suffered when
Greece shut its banks early half of the year. Growth in
India remained robust, supported by strong investor
sentiments and positive impacts on real incomes
brought about by falling oil prices. Subsequent shocks
from the dysfunctional market in China, devaluation of
the Renminbi and loosening of monetary policy across
major markets resulted in weak market sentiment across
the globe towards the end of 2015. Asian stock markets
fell around 3%
3
with Tokyo’s Nikkei 225 Index falling
2% to 20,283.98 points
4
. S-REITs was not spared as
the FTSE Straits Times Reit Index slumped 8.3% within
30 days in August 2015 and tumbled 8.8% for the whole
of 2015.
Against a choppy backdrop, PLife REIT’s performance
remained largely stable throughout 2015, cushioned by
its strong balance sheet, unique proposition and prudent
risk management.
On the geopolitical front, the rise of ISIS, Russia’s role
in Syria, exodus of refugees to Europe, China’s muscle-
flexing in the South China Sea and upcoming elections
in major nations continued to rattle financial markets.
Rising tension between North Korea and South Korea,
coordinated attacks that occured in Paris, are examples
of external risks that have to be considered as they elicit
shock and uncertainty through the global economy.
For 2015, economic divergence and geopolitical threats
had been the underlying themes which led to significant
ParkwayLife REIT
Annual Report 2015
10
