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The Week Ahead: REITs On Tap

The earnings spotlight falls on the midcaps, as Straits Times Index (SGX: ^STI) elites take a breather. Hongkong Land (SGX: H78) may provide a trading update ahead of full-year results on 2 March. But that has not been confirmed.

Singapore Post (SGX: S08) is set to announce third-quarter results. In November, the logistics company said revenues increased 10.2%. However, underlying net profit only rose 1.9%. Singpost said postal revenue grew 16.9%, thanks to cross-border e-commerce deliveries. But there was a decline in domestic mail.

At the time of its first-half results, SIA Engineering (SGX: S59) said the aircraft maintenance industry is faced with challenges. It pointed out that new-generation aircraft require less frequent maintenance. In the first six months, revenue rose 2%, while underlying profits gained 1%.

A trio of REITs are pencilled in for numbers next week. They are Starhill Global (SGX: P40U), CapitaLand Retail China Trust (SGX: AU8U) and stapled trust OUE Hospitality Trust (SGX: SK7).

On the economic front, the Fed has an important interest-rate decision to make. The market is not expecting interest rates in February. But the recent slide in the US dollar against most major currencies could force the rate-setting committee to go back to the drawing board. This will be Janet Yellen’s final time in the chair before she steps down on 3 February.

There are also US non-farm payroll and unemployment numbers to digest. The number of non-farm jobs is expected to come in at around 195,000, while the unemployment rate could remain unchanged at 4.1%.

The PMI numbers is expected to show that Chinese economy is continuing to expand, albeit at a slower pace. Of interest will be the Caixin Services PMI number. In December it unexpectedly jumped to 53.9. In January it could come in at 53.1.

The Eurozone will report flash inflation numbers for January. In January, consumer prices inflation stood at 1.4% year-on-year. The core inflation rate, which excludes volatile items such as energy and food prices, was 0.9%.

Bank investors may be interested in Singapore lending figures for December. In November, bank loans increased to a record high of S$653.7 billion, as lending to both businesses and consumers rose. The record is expected to be broken, with analysts pencilling in bank loans of S$659.2 billion.

A finally, Wednesday is Thaipusam. A colourful procession in celebration of Lord Murugan will start at 9:30pm from the Sri Srinivasa Permual Temple in Little India on 30 January and end the next day at the Sri Thendayuthapani Temple on Tank Road the next day.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Hongkong Land. Motley Fool Singapore Director David Kuo owns shares in Starhill Global and CapitaLand Retail China Trust.