In the upcoming week, a key economic indicator to watch is the Industrial Production figures for July. Other important data include the Deposits and Balances of Residents Outside Singapore, Money Supply M1, and Money Supply M2.
On the corporate front, the quarterly reporting cycle is set to conclude, with final reports expected from companies such as Prudential PLC (SGX:K6S), Micro Mechanics (Holdings) Ltd (SGX:5DD), UG Healthcare Corporation Ltd (SGX:8K7), Karin Technology Holdings Ltd (SGX:K29), and ASL Marine Holdings Ltd (SGX:A04).
Our firm believes Prudential PLC is positioned to benefit from several positive factors over the next five years. The new CEO, Anil Wadhwani, who took the helm in 2023, is expected to drive meaningful changes. Furthermore, anticipated cuts to the US Federal Reserve’s target rate and stronger Asian currencies against the US dollar could bolster Prudential’s share prices. (Read further: CGS International Sector Note | Insurance | Aug 20, 2024)
The July Industrial Production data will be a central focus. June saw industrial production contract by 3.8% month-on-month (MoM) and decline by 3.9% year-on-year (YoY). This downturn was largely driven by a significant drop in electronics output, which fell by 5.5% following an 18.6% increase in May. Semiconductor production also saw a notable decrease, dropping by 9.4% compared to an 18.8% rise previously.
Additionally, bank lending figures for July will be watched. In June 2024, Singapore bank loans rose to S$803.6 billion, up from a four-month low of S$796.7 billion in the previous month. This increase in bank lending suggests a resurgence in borrowing and investment activities.
Moreover, recent news on Singapore’s core inflation, which slowed more than expected to 2.5% YoY in July, may prompt investors to anticipate discussions on monetary policy ahead of the October review. If an easing policy is expected, sectors such as consumer goods and services could see greater benefits.
Overall, the performance of the manufacturing sector, trends in bank lending, and the final batch of corporate earnings will be key in shaping market sentiment and guiding investment strategies this week.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
