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The Week Ahead: Singtel Calling

We are now at the tail end of the quarterly earnings season, with just a handful of Straits Times Index (SGX: ^STI) left to report this week.

Golden Agri-Resources (SGX: E5H) will step into the spotlight on Tuesday. The company fell into the red in February on lower production volume and a fall in crude palm-oil prices. The palm-oil farmer also wrote off assets in China, following the sale of its oilseed crushing and vegetable oil refining business.

Singapore’s largest telecom company, Singtel (SGX: Z74) will report full-year earnings on Thursday. In the third quarter, Singtel was affected by reduced revenues, higher financing costs and lower contributions from associated companies.

Thai Beverage (SGX: Y92) is expected to step up to the rostrum on Friday with first-half numbers. In the first quarter, the brewer posted a 62% drop in net profits as a result of business acquisitions.

The last two blue chip to report earnings this quarter are both airlines related. In the third quarter, SATS  (SGX: S58) posted a slight dip in revenues and a small rise in profits. It said its performance remains resilient despite a challenging operating environment.

Singapore Airlines (SGX: C6L) reported a 62% jump in net profits for the third quarter. The Singapore flag carrier said growing passenger numbers are higher cargo volume had helped to offset falling ticket prices and rising fuel costs.

On the economic front, there are retail sales numbers from both the US and China. In March, retail sales in America increased 4.5% year on year, which is close to the average growth rate over the last twenty years. In China, retail sales growth is expected to slow from 10.1% in March to around 9.8%.

Japan will announce first estimates for economic growth in the first quarter. In the last three months of 2017, the economy grew at an annualised rate of 1.6%, which was faster than market expectations.

Japan will also report its inflation rate for April. In March, consumer prices rose by 1.1%, which was the lowest inflation rate since December last year. The rate of inflation in April is expected to have inched up to 1.3%.

And finally, all eyes could be on Malaysia’s first-quarter economic growth. In the December quarter, the economy expanded 5.9% year on year compared to growth of 6.2% the previous quarter.

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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 own shares in SATS.