Singapore Market Week Ahead: Embracing Thai SDRs; Monitoring Consumer and Manufacturing Sectors

April 1, 2024

As Singapore’s market participants brace for the upcoming week, the spotlight shines not just on local economic indicators but also on new investment opportunity through Thai Singapore Depository Receipts (SDRs).

Today, the Singapore Exchange (SGX) welcomes the arrival of five new Thai SDRs, offering investors a diversified foray into Thailand’s robust corporate scene. With a collective market capitalization of 2.7 trillion baht (S$100 billion), these instruments augment the total value of the eight SDRs to an impressive 4.7 trillion baht. The newly introduced entities—Advanced Info Service (TADD), Delta Electronics (TDED), Gulf Energy (TGED), Kasikornbank (TKKD), and Siam Cement (TSCD)—not only diversify investment portfolios but also extend coverage to over 40% of the SET 50 benchmark index, across varied sectors.

This expansion, debuting on April 1st, signifies a potent cross-border collaboration and a widening of the investment horizon for market enthusiasts.

On the home front, we saw a 1.7% increase in HDB resale prices and a 1.5% rise in private home prices in Q1 2024. HDB’s latest flash estimates show a promising 5.5% hike in resale volume, indicating a market steadying itself post-cooling measures. Such stability is a harbinger of sustained growth and beckons attention from real estate investors.

Shifting the focus to consumer market metrics, the upcoming release of February’s retail sales data holds significant weight. Following a slight dip of 0.7% in the past month and a 1.3% year-on-year (yoy) climb, the market is anticipated the retail sector to see a downtrend. Aside from that, the manufacturing health is up for review with the SIPMM Manufacturing PMI for March, where a score bordering 51 indicates the sector’s continued expansion. Complementing this, the S&P Global PMI positions itself as a critical barometer of the broader economic landscape, marrying insights from manufacturing and services sectors alike.

Global economic currents are expected to sway local tides as well. Key manufacturing PMIs from China and the United States serve as precursors to potential fluctuations in Singapore’s export-dependent economy. These indicators, particularly China’s Caixin Manufacturing PMI and the U.S.’s ISM Manufacturing PMI, will be meticulously assessed for their broader market implications.

Towards the end of the week, all eyes will turn to the U.S. labor market, with Non-Farm Payrolls and Unemployment Rate data from March offering critical insights into the world’s largest economy’s labor dynamics, with inevitable reverberations felt across global markets.

While the start of Q2 2024 might not be as busy, there are some excitement with the introduction of Thai SDRs, local property and consumer data, coupled with manufacturing indicators. A well-rounded perspective that blends local foresight with global trends will play an important role to guide investors in making their investment decisions.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.


Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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