In the upcoming week, the release of Singapore’s core consumer price index (CPI) and overall CPI data for July will take centre stage. SATS Ltd (SGX:S58) will be in focus on corporate updates as the aviation services provider releases its financial results for the first quarter ended June 30, 2024 (1QFY2025). The open bidding for Certificates of Entitlement (COE) in categories A, B, and E is another key event.
Prime Minister Lawrence Wong’s first National Day Rally speech on Sunday introduced significant policy changes, including financial assistance for retrenched workers and increased paternity leave, aimed at widening Singapore’s social safety net. These measures, alongside the release of July inflation data, are expected to drive substantial economic conversations this week, influencing market sentiment and investment strategies.
In June, the core CPI, which excludes the costs of accommodation and private road transport, rose by 2.9% year-on-year (YoY). The overall CPI, which includes all items, increased by 2.4% YoY but saw a slight decline of 0.2% month-on-month (MoM). Analysts are expecting a slight uptick in CPI inflation for July from June’s figures.
On the corporate front, in anticipation of SATS’s latest quarterly result, our firm’s research team forecasted the company to report a core net profit of approximately S$35 million. Our analysis suggests that there could be an earnings upside, driven by stronger cargo volume growth amid disruptions across sea cargo routes.
Another key event this week is the open bidding for Certificates of Entitlement (COE) in categories A, B, and E. The COE system, which regulates the number of vehicles on Singapore’s roads, plays a crucial role in determining the cost of vehicle ownership. The outcome of these bids can impact the automobile market, influencing both car prices and consumer demand.
Beyond Singapore, several global events and data releases are expected to influence market sentiment. In Japan, the release of July CPI, imports, exports, and trade balance data will provide insights into the country’s economic performance and trade dynamics. Meanwhile, in the United States, the Federal Open Market Committee (FOMC) meeting minutes will be scrutinised for further indications of future monetary policy moves.
Additionally, the release of US’s August manufacturing, services, and composite Purchasing Managers’ Index (PMI) data, along with initial jobless claims, will offer a snapshot of the US economic landscape. The Jackson Hole economic policy symposium is also running this week, where central bankers and economists will discuss key economic issues and policy directions.
Retail investors should stay informed about these developments and potentially capitalise on emerging opportunities in the market. Happy investing!
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of the mentioned company.
Reference
Singapore Strategy | Positioning for 2QCY24 reporting season
