Singapore Market Week Ahead: Top Glove’s results, COE Bidding, and Global Rate Decisions

March 18, 2024

In the upcoming week, local attention will be fixed on the outcome of Top Glove Corporation Bhd’s (SGX:BVA) financial results and the implications of the Certificate of Entitlement (COE) bidding. On the global stage, important economic signals from the Federal Reserve, Bank of England and Bank of Japan will serve as crucial indicators, shaping market sentiment and influencing investment strategies.

SGX Corporate Focus

On Wednesday, Top Glove, the world’s largest rubber glove manufacturer, will unveil its second quarter financial results (2QFY2024). Our house anticipates potential losses persisting until late-FY2025 due to sizable excess capacity that requires reduction to enhance utilisation rates.

Additionally, investors should note several ex-dividend and ex-entitlement dates this week. Asian Pay Television Trust’s (SGX:S7OU) ex-dividend is on Wednesday, offering SGD 0.00525 per share for its financial year ending Dec 31, 2023. Jardine Matheson Holdings Ltd (SGX:J36), Mandarin Oriental International Ltd (SGX:M04), Hongkong Land Holdings Ltd (SGX:H78), and DFI Retail Group Holdings Ltd (SGX:D01) will all have their ex-dividend dates on Thursday.

No Signboard Holdings (SGX:1G6), currently under a two-year share trading suspension, will undergo a 6:1 share consolidation exercise effective March 22, with consolidated shares set to resume trading on the SGX Catalist board on March 20.

Singapore Highlights: COE Open Bid

The COE open bid, spanning from Wednesday to Friday, reflects market demand for Category A (mainstream car), B (premium car), and E (excluding motorcycles). In the first bidding exercise of March 2024, COE prices surged across all categories except Category B, with Category A witnessing the most significant increase of 8.1%.

Global Economic Signals and Central Bank Decisions

In Japan, investors will closely monitor the Bank of Japan’s (BOJ) Policy Balance Rate and 10-Year Yield Target announcements on Tuesday, followed by releases on Industrial Production YoY and Capacity Utilization MoM.

China’s economic landscape will be influenced by the release of 5-Year and 1-Year Loan Prime Rates on Wednesday, impacting consumer spending and investment decisions.

Thursday will witness significant developments in the United States, with announcements regarding Federal Open Market Committee (FOMC) Rate Decisions, Interest on Reserve Balances Rate, Current Account Balance, Initial Jobless Claims, and Continuing Claims, all of which are expected to have far-reaching implications across various sectors and investor sentiment.

The Bank of England will announce its Bank Rate decision on Thursday, influencing borrowing costs and investment decisions. Meanwhile, the European Central Bank (ECB) will provide insights into monetary policy or economic outlook through ECB’s Nagel Speaks on Thursday to Friday.

Moreover, the Reserve Bank of Australia’s (RBA) Cash Rate Target announcement on Tuesday and RBA COO Woods-Panel Participation on Thursday will impact borrowing costs and overall economic activity, impacting interest rates and currency exchange rates. The RBA-Financial Stability Review release on Friday will provide insights into financial system stability, influencing banking and investment decisions.

Inflation and Consumer Trends

South Korea’s Producer Price Index (PPI) YoY release on Friday will shed light on inflation at the producer level, potentially impacting consumer prices and corporate profits.

The release of Japan’s National Consumer Price Index (CPI) YoY, also on Friday, will allow investors to assess inflation trends and purchasing power.

Indonesia’s benchmark interest rate announcement on Wednesday will influence borrowing costs and investment decisions, impacting economic activity.

The United Kingdom’s CPI YoY, CPI Core YoY, CPI Services YoY, CPIH YoY releases on Wednesday will offer insights into consumer price inflation trends, while Thursday’s Public Finances and Public Sector Net Borrowing releases will reflect government fiscal health, affecting bond markets and currency.

For Taiwan, Wednesday’s Bloomberg March Taiwan Economic Survey and YoY export orders release will provide insights into Taiwan’s economic outlook and global trade impact. Thursday’s release of Taiwan’s Central Bank of the Republic of China (CBC) Benchmark Interest Rate and Friday’s Unemployment Rate will influence borrowing costs and consumer sentiment.

In conclusion, this week’s dynamic mix of data presents Singaporean investors a blend of opportunities and challenges across both global economic fronts and local corporate developments. By staying attuned to these key indicators and events, investors can navigate the markets with agility and strategic foresight, positioning themselves for success in an ever-changing financial environment.

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

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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