This week, investors focusing on the Singapore market should keep an eye on key economic data releases, including the Consumer Price Index (CPI) figures for August and the Industrial Production data for August. Additionally, several companies have scheduled ex-dividend and ex-bonus dates this week.
The consensus year-on-year (YoY) forecast for the core CPI is 2.5%, and for the overall CPI, it is 2.2%. In July, core consumer prices in Singapore increased by 2.5% YoY, marking the smallest rise since February 2022 and falling short of the estimated 2.9%.
The annual inflation rate remained steady at 2.4% in July, unchanged for the second consecutive month but below market forecasts of 2.5%. On a monthly basis, the CPI dropped by 0.3%, the steepest decline since January, following a 0.2% fall in June.
As for the Industrial Production data for August, consensus forecast for YoY growth is at 8.9%. In July, Singapore’s manufacturing production rose by 1.8% YoY, recovering from a revised 4.3% decline in the previous month and surpassing market expectations of a 1.1% decrease. On a month-on-month basis, manufacturing production surged by 10.1% in July.
Investors should watch for corporate actions scheduled for this week. On Monday, LMS Compliance Ltd (SGX:LMS) will go ex-bonus, issuing one new security for every five LMS Compliance shares held. On Wednesday, Shangri-La Asia Ltd (SGX:S07) will go ex-dividend with a dividend of HKD 0.05 per share. On Friday, IHH Healthcare Bhd (SGX:Q0F) will go ex-dividend with a dividend of MYR 0.045 per share.
Overall, investors are also watching for potential positive factors for the Singapore market, as the recent Federal Reserve rate cut makes Singapore as a notable beneficiary due to the large number of interest-rate sensitive Real Estate Investment Trusts (REITs) in the market. These tailwinds may include a growing interest in dividend-paying stocks as bond yields decline.
Nonetheless, market volatility could continue towards the end of the year, driven by uncertainties related to the upcoming US presidential election in November, the unpredictable geopolitical landscape, and potential disruptions in global supply chains.
The key economic indicators and corporate actions in the week ahead provide valuable insights for investors. While there are positive signs on the horizon, investors are advised to stay vigilant and monitor these developments closely.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
