The Week Ahead: All Eyes On DBS Group

Earnings season in Singapore goes into overdrive with no less than five Straits Times Index (SGX: ^STI) pencilled in for quarterly results.

Singapore’s S$40 billion banking behemoth, DBS Group (SGX: D05) is likely to garner close attention following the recently- announced tepid bank lending figures. According to the Monetary Authority of Singapore, loans through domestic banking units fell 1.3% from a year ago. It was also down 0.7% from the previous month.

Elsewhere, there are quarterly figures from SIA Engineering (SGX: S59) and Singapore Airlines (SGX: C6L). In July SIA Engineering warned that “lower work content and longer check intervals of newer generation aircraft” could impact the business. But Singapore’s flagship carrier, SIA, could continue to see tangible benefits from the lower cost of fuel.

Other blue chips that are scheduled for results next week include Hutchison Port Holdings (SGX: NS8U) and StarHub (SGX: CC3).

Turning to economic matters, the Reserve Bank of Australia and the Bank of England will both get an opportunity next week to respond to the shock decision by the Bank of Japan to adopt negative interest rates. The RBA is likely to leave interest rates unchanged, while the BoE could stand pat on interest rates at least until the end of this year. The Reserve Bank of India also has to decide on interest rates.

There are two sets of indicators from China next week. One is important, the other less so. The former, namely, the Non-manufacturing Purchasing Managers’ Index has been comfortably above a reading of 50, which indices expansion in the sector.

However, the Manufacturing PMI, which has been below 50 for the last five months, could worry those who have not been paying attention to China’s stated intention to rebalance its economy from manufacturing to services.

The US is set to release a raft of economic data next week that span Personal Spending to Total Vehicle Sales. But perhaps the most closely watched figure is likely to be the Non-Farm Payroll numbers on Friday. America has been adding jobs at a healthy rate of around 200,000 every month. The December jobs number handily beat market expectations.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.