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Q3 corporate earnings likely to be weaker: Analysts

No eye-popping numbers expected, following signs of slowing economy

Published on Oct 6, 2012 6:00 AM
Oil rigs being built at Keppel Fels shipyard. Despite the global slowdown, oil and gas players are likely to post strong third-quarter earnings, which will have a knock-on effect on marine and offshore services firms. -- ST PHOTO: LIM WUI LIANG

Singapore companies are unlikely to post any show-stopping earnings figures in the coming weeks but this should come as no surprise to investors keeping up with recent economic data, say analysts.

The signs point to a slowing local economy - factory activity has been slowing for the past three months, exports have fallen and inflation dropped to its lowest level in nearly two years in August.

As a result, analysts do not have high expectations for third- quarter corporate earnings, said OCBC Investment Research head Carmen Lee.

"This last one or two quarters, the economic data has been lower than expected, so people have moderated their expectations and there shouldn't be any major negative shocks," she added.

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