Your bite-sized weekly update (23 July)

By Beansprout • 23 Jul 2022 • 0 min read

Rising SGS bond yields, Sembcorp Industries & Genting SG optimism, and Tesla's earnings beat

Weekly sprout image

In this article

0 min read

THIS WEEK IN MARKETS

With the spate of disappointing economic data and company results (think Snap), you might be finding it hard to identify the bright spots in the markets. 

So, we thought we’ll try to list a few. 

  1. The latest yield on the 6-month Singapore Government Securities (SGS) bonds reached 2.93%.

  2. Sembcorp Industries and Genting Singapore’s share prices gained on earnings optimism. 

  3. Tesla is still targeting to grow its electric vehicle production by 50% this year.  

We hope these are good enough reasons to get you excited about the week ahead – which is shaping up to be another interesting one with the FOMC meeting and earnings from Apple, Meta and Alphabet! 

IMPORTANT

Stock Market Update
Source: Bloomberg. Weekly price change as of market close on 22 July
  • It’s looking grim. US services activity, German manufacturing activity, and European business activity contracted in July, raising concerns of a deepening economic slowdown.    

  • Europe’s joining the hike party. The European Central Bank (ECB) raised interest rates for the first time since 2011, pushing its base rate up by 0.5 percentage points to tackle inflation. 

ICYMI

  • Tesla’s not too bad quarter. There are a few things to cheer about Tesla’s recent results – the electric vehicle (EV) maker managed to keep its operating margin at 14.6% in 2Q22 despite production hiccups, it’s still targeting to grow production by 50% this year, and it shared that demand for EVs remain healthy. Musk also claims that “its best product ever” – the Cybertruck, will come in the middle of next year. Read more here. (Source: Bloomberg)

  • Snap brings tech down. Snap reported its slowest sales growth since going public, and expects its 3Q revenue to be about flat compared to the previous year. The company attributed the weak performance to a major slowdown in ad spending and rising competition for marketing dollars. The share price of other social media and digital ad companies such as Meta fell with the negative readacross. (Source: Bloomberg)

  • Genting Singapore gets a boost from Las Vegas Sands (LVS). Genting has been in the news a lot recently, but the most recent pop in its share price came through from strong results reported by its peer LVS. Marina Bay Sands saw its 2Q22 EBITDA (earnings before interest, taxes, depreciation and amortisation) almost triple from the previous year, prompting increasing optimism for the other integrated resort operator in Singapore.  (Source: Business Times)

  • Who’s gaining from higher electricity prices? Sembcorp Industries shared a positive profit guidance, expecting its earnings for 1H22 to be “materially higher” compared to the previous year. The company attributed the improvement in earnings to higher electricity prices in Singapore and India. (Source: Business Times)

THE BIG IMPORTANT STORY

What we learnt from the MAS Annual Report

MAS Managing Director Ravi Menon shares his thoughts on Inflation, interest rates and crypto regulations.

MAS
Source: MAS

WHAT’S UP THIS WEEK

Monday, 25 Jul

  • Singapore: Keppel DC Reit, Mapletree Industrial Trust earnings

Tuesday, 26 Jul

  • Singapore: Keppel Reit earnings
  • US: Alphabet, Microsoft, Visa, Coca Cola, McDonalds earnings

Wednesday, 27 Jul

  • Singapore: Suntec Reit earnings
  • US: Meta, Spotify, Shopify, Teladoc earnings

Thursday, 28 Jul

  • Singapore: Keppel Corp, SIA, Capitaland Integrated Commercial Trust earnings 
  • US: Apple, Amazon, Intel earnings
  • FOMC Rate Decision (2:00AM SGT)

Friday, 29 Jul

  • Singapore: UOB, CDL Hospitality Trusts earnings
  • US: ExxonMobil, Chevron earnings

Get the full economic and Singapore earnings calendar on the SGX Academy

Source: SGX, Bloomberg, Refinitiv

THAT’S INTERESTING

  • Jetstar doesn’t want to move. Jetstar said that it has no intention of moving to Changi Airport’s Terminal 4, and was ‘extremely disappointed’ with Changi Airport’s unilateral decision to relocate the airline. (Source: Channelnewsasia)

  • Elon Musk wants you to go into lithium refining. At the recent Tesla results call, Elon Musk strongly urged entrepreneurs to enter the lithium refining business.  He said “you can’t lose. It’s a license to print money.” (Source: Tesla)

Tesla Elon Musk 2Q22
Source: Tesla

Read also

Gain financial insights in minutes

Subscribe to our free weekly newsletter for more insights to grow your wealth

chatbubble Comments

0 comments