Singapore Market Week Ahead: Earnings Avalanche, S&P Global Singapore PMI, Foreign Exchange Reserves, and More

May 6, 2024

This week, Singapore’s stock market will be buzzing with earnings releases from a variety of real estate investment trusts (REITs) and other players. Notable REITS include Frasers Logistics & Commercial Trust (SGX:BUOU), Paragon REIT (SGX:SK6U), Manulife US REIT (SGX:BTOU) and Lendlease Global Commercial REIT (SGX:JYEU).

For other sectors, key companies include Oversea-Chinese Banking Corporation Ltd (OCBC) (SGX:O39), Frasers Property Ltd (SGX:TQ5), CSE Global Ltd (SGX:544), Singapore Post Ltd (SGX:S08) and SIA Engineering Company Ltd (SGX:S59).

These earnings reports will offer insights into the performance and outlook of various sectors. Earnings reports also play a pivotal role in helping retail investors strategize for dividends and maximize their profits.

As of April 30, our house has put an ‘add’ call for Lendlease Global Commercial REIT with a target price of S$0.83 and a forecasted FY24 dividend yield of 7.8%. We also recommended ‘add’ for Frasers Logistics & Commercial Trust, with a target price of S$1.27 and a forecasted FY24 dividend yield of 6.7%. Investors can pay close attention to these stocks as they may present promising opportunities.

Regarding economic indicators, the release of the S&P Global Singapore Purchasing Managers’ Index (PMI) for April will shed light on the state of Singapore’s manufacturing sector. Despite a slight decline in March, the rate of expansion remained strong at 55.7. Sentiment in the Singaporean private sector remained positive as firms were generally optimistic that business activity will rise in the year ahead.

Investors can also bookmark the release of the Singapore’s Foreign Exchange Reserves for April. These reserves serve as a buffer against external shocks and underpin confidence in Singapore’s exchange rate regime, a pivotal factor influencing trade dynamics, investment decisions, and overall economic equilibrium.

Beyond Singapore, China’s Balance of Trade for April will be unveiled. With exports and imports both showing signs of decline in March, investors will be keen to see if this trend continues and its potential impact on global markets.

China’s Inflation Rate for April will also be revealed, and given the recent muted rise in consumer prices, this indicator will be closely watched by investors for any signs of inflationary pressures or further deflationary concerns.

In the United States, the University of Michigan’s Consumer Sentiment Preliminary for May will be released, offering insights into consumer confidence and spending patterns in the US. With consumer sentiment revised slightly lower in April, investors will be monitoring this indicator for any shifts in consumer behaviour and its potential impact on the broader economy.

Staying informed about earnings releases and economic indicators is essential for retail investors to make sound investment decisions. By keeping a close eye on the performance of key stocks such as Lendlease Global Commercial REIT and Frasers Logistics & Commercial Trust, as well as monitoring economic indicators both domestically and globally, investors can better navigate market volatility and identify opportunities for growth and stability in their investment portfolios.

Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.

China’s weak CPI, factory-gate deflation point to more stimulus | Reuters
US Consumer Sentiment Falls as Inflation Expectations Climb – Bloomberg

Hailey Chung

As a lifelong learner, Hailey strives to simplify finance for everyday investors, making it relatable and enjoyable. She desires to support investors with various background, whether they are grappling with limited time and resources in seeking financial freedom or are sincere in stewarding their money well as a token of gratitude for God's provision. With a focus on responsible investing, Hailey balances caution and opportunity, believing life's too short to stress over market fluctuations. Beyond the pursuit of profits, she advocates for investments aligned with building a better world. As Manager of Content at ProsperUs, she leverages her journalism background from The Edge Malaysia, where she honed her skills at the capital and corporate desk.

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