As we look ahead to the upcoming week in the Singapore market, the focus will be on the Monetary Authority of Singapore (MAS) October review on monetary policy decisions, the advance estimates of the third quarter (Q3) economic growth data, and earnings from Top Glove Corporation Bhd (SGX:BVA).
Here’s an overview to help you keep watch:
1. Monetary Policy Statement by MAS
MAS is set to release its next Monetary Policy Statement no later than October 14. Investors will be watching closely to see if MAS maintains the current pace of the Singapore dollar’s appreciation or decides to ease it.
MAS’s decisions directly impact the strength of the Singapore dollar, which in turn affects inflation, import/export prices, and overall economic stability. A stronger SGD can help control inflation but might hurt export competitiveness, while a weaker SGD can boost exports but may increase inflation.
2. Singapore GDP Q3 Advance Estimates
The advance estimates for Singapore’s Q3 GDP growth will be released soon. In Q2 2024, the final reading showed that the economy grew by 0.4% quarter-on-quarter and 2.9% year-on-year, driven by sectors like wholesale trade, finance and insurance, and information and communications. The government has revised its 2024 GDP growth forecast to 2% to 3%, with expectations leaning towards the upper end of this range.
However, recent news of tech company layoffs has raised concerns about the potential impact on Singapore’s crucial advanced manufacturing sector. Within just a few days, blue-chip companies such as Samsung Electronics, Dyson, and Shein announced workforce reductions, highlighting the broader effects of the global economic slowdown.
3. Singapore Foreign Exchange Reserves
The September foreign exchange reserves in Singapore will be released this week. Singapore’s foreign exchange reserves fell to S$501.3 billion in August from S$506.4 billion in July. Foreign exchange reserves are crucial for maintaining financial stability and supporting the national currency. A decline in reserves might signal economic stress or increased spending to defend the currency, which can affect investor sentiment and market stability.
4. Top Glove FY2024 Earnings
Top Glove will release its Q4 and full-year results for FY2024 on Thursday. The recent increase in US tariffs on China-made medical gloves has boosted investor sentiment towards Malaysian glove manufacturers like Top Glove.
Corporate earnings provide insights into a company’s financial health and prospects. Positive results from Top Glove could boost the healthcare sector and related stocks, while disappointing results might have the opposite effect.
5. Ex-Rights and Ex-Dividends Date
Aspial Lifestyle Ltd (SGX:5UF) will have an ex-rights issue, offering one new share for every five shares held. Additionally, several companies will go ex-dividend: Malaysia Smelting Corporation Bhd (SGX:NPW) with a dividend of RM0.07, GKE Corporation Ltd (SGX:595) with S$0.002 per security, UMS Integration Ltd (SGX:558) with S$0.01 per security, and Union Gas Holdings Ltd (SGX:1F2) with S$0.006 per security.
In summary, keep an eye on potential monetary policy adjustments by MAS, which could impact the SGD and overall market sentiment. The Q3 GDP estimates will offer valuable insights into the health of the economy and key growth sectors. Top Glove’s earnings report could significantly influence the healthcare sector and related stocks. Lastly, monitoring changes in foreign reserves will provide clues about Singapore’s economic resilience.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
Reference
Economic Calendar – SGX Academy
