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Editorial Desk
Editorial Desk | 25 October 2012
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By: Xavier Lim
Articles (51) Profile

It’s the earnings reporting season and investors are turning their focus back to corporate earnings again!

The US stock market averages posted their worst single-day hit since June on 19 Oct-12 after blue chip stocks McDonald’s, General Electric and Microsoft reported weaker-than-expected earnings. In fact, over the past few weeks, global stock markets have been consolidating in the wake of the strong gains made since June.

Meanwhile, Japan reported that its exports declined year-on-year by a larger-than-expected 10.3 percent, attributable to a huge fall in shipments to China and Western Europe. More details on page 12. At the same time, China announced that its economy slowed for a seventh straight quarter in the third quarter of 2012, marking the first time since the depths of the global financial crisis that its annualized growth figure has been below target. Nevertheless, Premier Wen Jiabao said that China’s economic situation in the third quarter was relatively good, according to the official Xinhua News Agency, signalling that the nation’s economy is bottoming. The world’s second largest economy slashed its growth target to 7.5 percent from the previous 8 percent target for the year 2012.

Back home, the fall in exports for the second straight month in September has caught many market experts by surprise. The decline was due to the worsening performance of the electronics sector as the Lion City has missed out on the demand for consumer gadgets, such as Apple Inc’s iPhone 5, which has helped other parts of Asia. Flip no more to our cover story this issue on page 6 for more insights.

Next, we explored and examined the prospects of TA Corporation. In an exclusive interview with the chief executive officer, Neo shared with us what his company has in the pipeline and his views on the recent property cooling measures announced by the Monetary Authority of Singapore.

We also took a closer look into the story of Kingsmen Creatives. Since its founding in 1976, the company has grown to become a leading communication design and production group in Asia Pacific and the Middle East. Kingsmen Creatives posted a 23.5 percent and 26.9 percent jump in its earnings and revenue respective in its latest 1H12 financial results. DMG & Partners has called a BUY on this company. Turn to page 14 for more details.

Given the slowing economic growth and cooling property measures introduced, we are expecting more downgrades for banks and properties in this 3Q12 results season. But still, we believe that stock markets are likely to resume broad gains in the middle term due to the recent supportive policy measures from global central banks.

Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

Please click here for more information about this author.

TA Corp  -- -- --   
Business: Co is engaged in the construction industry as well as the devt & sale of residential & other types of ppties. [FY17 Turnover] Construction (67.8%), real estate invs (7.3%) real estate devt (13.1%) & distribution & others (11.8%).

Insight: Nov-18, 9M18 revenue fell 41.9% to $92.4m mainly a... Read More
Kingsmen Creatives  0.510 -0.005 -0.97%   
Business: Designs & produces exhibits & interiors. [FY18 Turnover] Retail & corporate interiors (47.7%), exhibitions & thematic (44.4%), research & design (4.7%), alternative marketing (3.2%).

Insight: May-19, 1Q19 revenue rose 25.7% due to the contrib... Read More

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The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

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