As the third quarter of 2024 unfolds, Singapore is gaining clarity on its economic trajectory for the year based on the data released in the first half of the year. Overall, Singapore’s economy is showing resilience and gradual recovery.
In the coming week, Singapore anticipates the release of its GDP Growth Rate Advance Estimates for the second quarter. The country’s economy showed a solid 2.7% year-on-year (y-o-y) increase in Q1 2024, aligning with flash estimates and exceeding market forecasts of 2.5%. This performance sets a positive tone for achieving the government’s GDP growth forecast for 2024, which remains at 1% to 3%.
In the corporate arena, Chinese data center developer and operator GDS Global Ltd (SGX: 5VP) is scheduled to go ex-rights, offering a 1:1 ratio. Additionally, investors should note ex-dividend actions from global semiconductor equipment supplier UMS Holdings Ltd (SGX: 558), planning to distribute a dividend of S$0.012 per share, and coal trader and shipping solutions company Resources Global Development Ltd (SGX: V7R), paying out a dividend of S$0.007 per share. These corporate actions are likely to attract investor attention and influence trading volumes.
Beyond Singapore, markets will monitor developments in China and the United States. China’s June inflation data is set to be released, with May’s month-on-month (m-o-m) inflation rate standing at 0.3%, signaling a steady recovery in domestic demand.
Moreover, focus will be on China’s Producer Price Index (PPI) for June, which declined by 1.4% y-o-y in May, contributing to a cumulative decline of 2.4% over the first five months of 2024. China’s Balance of Trade for June is also anticipated. China’s trade surplus widened significantly to USD 82.62 billion in May 2024, highlighting strong export performance.
In the US, Federal Reserve Chair Jerome Powell’s testimony on the economic outlook and recent monetary policy actions will be watched. Key US economic data this week includes the US core inflation rate for June, expected to increase by 0.2% m-o-m, and the overall inflation rate for June, expected to rise by 0.1% m-o-m. Core inflation, excluding food and energy, eased to 3.4% in May, the lowest in over three years, while overall inflation slowed to 3.3%.
Furthermore, the US PPI for June is projected to show a 0.1% m-o-m increase, following a 0.2% decrease in May. The preliminary Michigan Consumer Sentiment Index for July will also be released, with June’s revision up to 68.2, indicating improved consumer confidence in the US economy.
These data releases and corporate actions are set to exert an impact on the Singapore market in the upcoming week. Key focal points include the Q2 GDP growth estimates for Singapore, the ex-rights and ex-dividend dates of companies in the Singapore Exchange, and important inflation data from China and US. Investors are encouraged to stay informed, using these insights to navigate opportunities and challenges in the market ahead.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
