The Week Ahead: Singtel Dials In

We are almost reaching the end of the earnings season. Singapore Telecommunications (SGX: Z74) will wrap up the reporting season for the telecom sector when it reports on Friday. In May, Singtel posted strong full-year numbers. It said the bottom line would have been better, if not for intense competition in India and the decline in termination rates in Australia.

Competition will also be on the minds of investors when ComfortDelGro (SGX: C52) steps into the spotlight. In the first quarter, ComfortDelGro was able to post a rise in profits despite a fall in revenue. The improvement was thanks largely to a special dividend from Cabcharge Australia.

Some good numbers from CapitaLand (SGX: C31) could bode well for City Developments (SGX: C09), when it reports second-quarter earnings. In May, CDL noted that the residential property market was beginning to show signs of recovery. The observation echoed comments from CapitaLand, which said that there is still a lot of liquidity in the market.

Other companies with a tale to tell include Wilmar International (SGX: F34), Singapore Technologies Engineering (SGX: S63) and Thai Beverage (SGX: Y92).

On the economic front, America will report inflation numbers for July. The rise in the cost of living is expected to remain largely unchanged at around 1.7%. The lowest inflation rate since October 2016 could make it harder for the Fed to justify another interest rate increase this year.

China will also be reporting July inflation numbers. This is expected to be around 1.5%. This is below the long-term average of 5.4%. Of more interest could be China’s balance of trade. This is expected to show a rise with growth in both imports and exports.

And finally Singapore will report retail sales for June. The numbers for May were below market expectations, with a disappointing performance from watches & jewellery, computer & telecommunications equipment and medical goods.

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