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The Week Ahead: Can UOB And OCBC Deliver?

It should be another action-packed week for earnings, ahead of Chinese New Year on Friday.

SATS (SGX: S58) will kick off proceedings on Wednesday. The airport-services company’s second-quarter numbers were bolstered by gains from the disposal of assets. Without the benefit of the gains, the underlying profits had still improved, though revenues dipped 0.8%.

Transport company, ComfortDelGro (SGX: C52), is set to report full-year numbers on Tuesday, too. In November, it said net earnings fell 8%, while revenues slipped 2%. The bulk of the fall was caused by competition at its Singapore tax division, which the company hopes to address by forming an alliance with Uber. The Competition Commission of Singapore is expected to rule on the deal by the end of the month.

Singapore Airlines (SGX: C6L) reported bumper second-quarter profits in November. However, the Singapore flag carrier cautioned that “headwinds remain”. It also warned that “yields continue to be under pressure”.

Property developer, CapitaLand (SGX: C31), posted a 28% jump in third-quarter earnings in November. The improvement was attributed to fair value gains at properties that include Golden Shoe Car Park and its investment in the serviced residence part of Funan.

Profits at Singapore’s second-largest telecom operator, StarHub (SGX: CC3), fell 11.5% in the second quarter. The dividend was cut from $0.05 a year ago to $0.04. But StarHub said it intends to maintain the dividend of four cents per quarter for the rest of this year.

Oversea-Chinese Banking Corporation (SGX: O39) and United Overseas Bank (SGX: U11) will hope to delight investors in the same way that rival DBS Group (SGX: D05) did, when they report full-year results next week. In October OCBC beat analyst forecasts with a 12% jump in third-quarter profits. UOB reported an identical improvement for its third-quarter. UOB chief executive said that was the bank’s strongest quarter yet.

On the economic front, the US will report inflation rate for January. The rate of consumer price rises is expected to show a small dip from 2.1% to 2.0%. That should help pacify nervous traders who have been panicking over a rapid increase in interest rates.

The UK will report inflation numbers, too. This could show that consumer prices rose 3% in January, which would be unchanged from the previous month. However, with the Bank of England base rate at just 0.5%, it is understandable why it has warned of earlier and larger rate hikes.

Japan will report preliminary economic growth numbers for the final quarter of 2017. This is expected to show that annualised GDP slowed from 2.5% in the third quarter to 1%.

Singapore will report retail sales for December. Economists are forecasting a slowdown from 5.3% in November to just 1.7%.

And finally, Gong Xi Fa Cai to everyone. The tail of the Rooster has been unpredictable to say the least. Let’s hope the head of Dog will be calmer for stock market investors this year.

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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. The Motley Fool has recommended SATS, DBS Group, and United Overseas Bank.