outlook

Creative reverses into the red in FY19 on lower sales, absence of settlement from patent lawsuits

SINGAPORE (Aug 22): Creative Technology reversed into the red for FY19 ended June, reporting a net loss of US$3.8 million ($5.3 million), compared to earnings of US$40.4 million in the preceding year.

Revenue for the year fell 17% to US$54.9 million from US$66.1 million back in FY18 although cost of goods narrowed 18% to US$38.9 million from $47.6 million last year.

ValueMax posts 58% increase in 2Q earnings to $6.7 mil on lower operating expenses

SINGAPORE (Aug 14): ValueMax reported earnings of $6.7 million for 2Q19 ended June, a 57.8% increase from $4.2 million in 2Q18 last year, on the back of lower operating expenses.

Revenue for 2Q19 rose 0.7% to $55.4 million from $55.0 million a year ago. Cost of sales fell 3.1% to $41.9 million.

Segmentally, revenue from retail and trading of jewellery and gold business and moneylending segments increased by $0.1 million and $0.6 million respectively, but was offset by a $0.3 million decrease in revenue from the pawnbroking segment.

S&P cuts Singtel's outlook to 'negative'; expects poorer performance from associates

SINGAPORE (Aug 1): In yet another blow to Singapore’s biggest telco, S&P Global Ratings has cut Singapore Telecommunications’ outlook to “negative”, citing more intense regional competition and increasing cash needs for capital expenditure and dividend payout.

S&P’s downgrade for Singtel comes after Moody’s Investors Service and Fitch Ratings cut their outlook to “negative” in March.

S&P is expecting the company funds from operations to debt – or leverage – to fall below 40% over the next 18 to 24 months as dividends from associates decline.

This is the year for office REITs to shine: OCBC

SINGAPORE (Jan 8): OCBC Bank is expecting Singapore office REITs to strengthen further in the near-term this year – and possibly, in the process, demand higher rents to bring about positive rental reversion.

In a Tuesday report, OCBC’s credit research team highlights office REITs as a bright spot among Singapore REITs (S-REITs), with the recent trend of strong new office supply looking to reverse in 2019.

What the near future holds for global fintech firms & investors: McKinsey

SINGAPORE (Dec 18): With financial technology (fintech) evolving considerably over the last few years, fintech investors will have to be increasingly selective in deploying their capital as some sectors and companies approach a “possible endgame”, suggests a new report by McKinsey & Company.

In its paper, Synergy and disruption: Ten trends shaping fintech, McKinsey postulates that various categories of fintechs will eventually either join forces or end up competing directly with each other as they mature.

Local manufacturing firms increasingly optimistic amid ongoing trade war: EDB survey

SINGAPORE (July 31): Positive business sentiment is on the uptrend among Singapore's manufacturers even with the ongoing US-China trade war, according to the Economic Development Board’s (EDB) Survey of Business Expectations of the Manufacturing Sector for 3Q18.

Compared to the EDB’s findings over 2Q, a net weighted balance of 5% of Singapore’s manufacturers are expecting output to increase in 3Q, with all clusters – save for chemicals – projecting higher output levels within the next three months.

Two oil & gas players to 'buy' as Brent crude oil uptrend remains intact

SINGAPORE (Jan 23): DBS Vickers Securities is maintaining its “overweight” stance on the oil and gas (O&G) sector given the recent oil price rally, which has driven up O&G stocks to directly benefit oil majors leading the rally.

In a Tuesday report, lead analyst Suvro Sarkar says the average Brent crude oil price for 2018 could end closer to the higher range of US$60-65 per barrel (/bbl) as forecasted by DBS – a healthy 15-20% improvement over the 2017 average of US$55/bbl.

CEOs optimistic on global economic outlook for 2018, but threats to growth remain

SINGAPORE (Jan 23): A record-breaking 57% of chief executive officers (CEOs) believe global economic growth will improve in the next 12 months, according to the latest data from PricewaterhouseCoopers’ 21st survey of almost 1,300 CEOs around the world.

In a media release on Tuesday, the professional services firm highlights that the latest figure is almost double that of last year (29%), and the largest-ever increase since PwC began surveying business leaders about global growth in 2012.

'Long winter' seen ending for Singapore home prices: Survey

SINGAPORE (Jan 23): The worst may be over for Singapore’s property slump.

After a four-year slide in private residential prices, analysts are now calling an end to the property downturn. Singapore home prices have risen for two consecutive quarters and they are expected increase by about 5.5% this year, according to a survey by Bloomberg.

There’s also the earnings season to look forward to next month as the upbeat outlook for the real estate market may augur well for Singapore developers.

10 biggest investor risks to look out for in 2018: Natixis

SINGAPORE (Jan 17): Economic and investor risks still abound despite relatively optimistic outlooks for 2018, according to Esty Dwek Roditi of Natixis Investment Managers.

In a Wednesday commentary, the investment specialist lists 10 of the biggest risks in the year ahead.

With the majority of market views remaining in line with consensus for the rest of the year, Dwek Roditi sees this as a manifestation of market complacency which translates to unpreparedness.

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