As the curtains rise on the Singapore Market Week, anticipation fills for two financial titans, DBS Group Holdings Ltd (SGX: D05) and United Overseas Bank Ltd (SGX: U11) to unveil their first quarter (Q1) 2024 earnings report.
DBS, the country’s largest bank by market capitalization, achieved a remarkable net profit of S$10.3 billion in FY2023, with analysts expecting stable Q1 2024 figures, albeit slightly lower year-on-year. Similarly, UOB recorded record earnings in FY2023, with investors closely monitoring the integration of its recently acquired Citigroup franchise across multiple Southeast Asian markets.
On the economic front, Singapore is set to release its March Import and Export Price Indices. In February 2024, the Import Price Index fell by 5.1% compared to the previous year, while the Export Price Index also declined by 1.7%. Additionally, attention will be on the country’s Q1 Unemployment Rate, which remained stable at 2% in Q4 of 2023 amidst a tight labour market.
The Singapore Institute of Purchasing & Materials Management (SIPMM) will reveal the Manufacturing Purchasing Managers’ Index (PMI) this week. The Singapore Manufacturing PMI edged up to 50.7 in March 2024 due to growth in new orders, exports, and output. Despite global uncertainties from geopolitical conflicts and high interest rates in many countries, Singapore’s manufacturing outlook appears promising as indicated by SIPMM’s assessment in early April.
Other key indicators to watch include the Singapore Loans to Private Sector for March, Singapore Business Confidence for Q1, and Retail Sales for March.
Meanwhile, the US Federal Reserve’s Interest Rate Decision looms large, with expectations tempered by a slower-than-expected economic growth in Q1 coupled with inflationary pressures, suggesting a delay in interest rate cuts until September.
In China, attention is on the National Bureau of Statistics (NBS) Manufacturing PMI and Caixin Manufacturing PMI. The official NBS Manufacturing PMI is a survey that focuses more on large-scale and state-owned companies, while the Caixin PMI focuses on smaller, private, and export-oriented firms. It’s worth noting that the two indices may exhibit divergent trends due to their varying sectoral focus.
In conclusion, the Singapore Market Week ahead is marked by anticipation surrounding key earnings releases, economic data releases, and global events such as the US Federal Reserve’s Interest Rate Decision and China’s manufacturing PMIs.
With a cautiously optimistic outlook for Singapore’s economy amid global uncertainties, investors will monitor the key earnings releases, economic data releases and global events such as the US Federal Reserve’s Interest Rate Decision and China’s Manufacturing PMIs for insights into market trends and potential opportunities.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
