Singapore investors likely to keep getting the jitters in October

Earnings recession, weak economy continue to dampen outlook.

With corporate earnings recession still on gloomy trend, investors are likely to stay guarded heading into the results season this October.

According to DBS Group Research analysts Janice Chua and Yeo Kee Yan, the weak manufacturing and services-related economic data releases would exacerbate the investors' subdued confidence.

"With recent data releases that showed July NODX, industrial production, retail sales and bank loans growth still stuck in negative territory and the O&G sector still in the doldrums; investors’ confidence is likely low that an end to the earnings downgrade trend is in sight," the two analysts said.

Chua and Yeo also stated that the upcoming United States Presidential election will push investors on the sidelines.

"We expect some measure of US equity market choppiness or volatility heading to that date. Historically, US equity indices tend to be volatile during presidential election years where
the incumbent is not seeking re-election," the two explained.