Markets Insights

Earnings season in full swing amid data releases

StarHub is set to release its second-quarter results tomorrow after the close of trading. Besides company results, data on Singapore's foreign exchange reserves will be announced tomorrow and June retail sales figures on Friday.
StarHub is set to release its second-quarter results tomorrow after the close of trading. Besides company results, data on Singapore's foreign exchange reserves will be announced tomorrow and June retail sales figures on Friday.ST FILE PHOTO

OCBC, StarHub, Singtel and CapitaLand among firms releasing results this week

The week ahead will have no shortage of company announcements as constituents of the key Straits Times Index (STI) are set to disclose their earnings.

Investors will be on the lookout for OCBC Bank, which is expected to announce its second-quarter results today. It will be "one to watch" as the STI struggles with the 3,300 level, noted IG market strategist Pan Jingyi in an analysis.

Raffles Medical Group will also release its second-quarter earnings on the same day.

StarHub is set to release its second-quarter results tomorrow after the close of trading. The stock ended last Friday at $1.68, down 1.75 per cent or three cents.

The stock dipped earlier this year amid news that it would be dropped from the MSCI Singapore Index and included instead in the MSCI Singapore Small Cap Index, hitting a low this year of $1.61 in June before edging up.

A fair number of large caps are set to announce results on Wednesday, including CapitaLand, City Developments, Singtel and ST Engineering.

  • 1.8%

  • Expected jump in retail sales in June, according to FXTM research analyst Lukman Otunuga.

Data on foreign exchange reserves will be announced tomorrow and June retail sales data on Friday.

Singapore's foreign exchange reserves are projected to have increased to $394.7 billion last month, while retail sales are expected to have jumped 1.8 per cent in June, FXTM research analyst Lukman Otunuga wrote in a research note.

He said that although the Singapore dollar "could find support if the economic figures exceed expectations", external risks in the form of the US dollar and global trade developments "continue to obstruct upside gains".

The US dollar, he added, has scope to extend gains on the back of heightened rate hike speculations, which are expected to happen in September and December.

Heading into the weekend, US stocks advanced last Friday despite heightened anxieties over trade tensions and weaker-than-expected jobs growth last month.

For the week, the S&P 500 and the tech-heavy Nasdaq gained ground, moving up 0.8 per cent and 1 per cent, respectively, while the Dow was essentially flat. The S&P 500 notched its fifth straight weekly gain, its longest advance so far the year.

US companies are nearing the end of the current reporting season; 406 companies in the S&P 500 have already reported, with 78.6 per cent of the results coming in above Wall Street's estimates.

Tech giant Apple last Thursday hit a historical milestone: It became the first US$1 trillion (S$1.37 trillion) publicly listed US company. Its shares advanced 0.29 per cent to US$207.99 at Friday's closing bell, capping a prosperous week.

Central banks in Australia, Thailand, New Zealand, the Philippines and Indonesia are expected to meet this week. The first three countries are widely expected to keep policy rates on hold again this month.

Bangko Sentral ng Pilipinas, the Philippine central bank, will be the one to look out for as it may raise interest rates by 50 basis points to 4 per cent, noted United Overseas Bank in a weekly research note.

A version of this article appeared in the print edition of The Straits Times on August 06, 2018, with the headline 'Earnings season in full swing amid data releases'. Print Edition | Subscribe