SG Morning Highlights | SIA Reports 7.2% Increase in Passenger Traffic in June

Advancers / Decliners is 108 to 56, with 105.10 million securities worth S$87.64 million changing hands.

Economists are predicting an upward revision in Singapore's GDP estimates for 2024, with Nomura expecting the Ministry of Trade and Industry (MTI) to raise its full-year forecast to 2%-3% from 1%-3%. They anticipate better performance for Singapore in the second half of the year, projecting GDP growth to rise to 3.1% YoY, compared to 3.0% in H1 2024, despite less favourable base effects.

Nomura projects GDP growth to average 1.3% QoQ in Q3 and Q4, compared to 0.3% in the first half, citing the global tech turnaround lifting manufacturing output and exports.

RHB also predicts a resilient H2 GDP, citing Singapore's exposure to the global economy from trade and investment activities, the possible US Fed Funds Rate reduction in Q4 2024, and the gradual dissipation of global inflation pressures. RHB predicts a full-year GDP growth of 2.5%, at the upper range of the current government estimate.

Nomura economists Euben Paracuelles and Charnon Boonnuch have warned that prolonged shipping disruptions could raise inflation risk, putting pressure on freight costs amid rising global trade. The city-state may also experience export front-loading ahead of US tariff increases on Chinese goods in August, they said. The attacks in the Red Sea earlier this year led to a spike in freight costs by 97% YoY year to date, as container ships re-routed from the Suez Canal to longer alternative routes. PSA Singapore, the operator of the world's largest transshipment hub, had warned that disruptions could persist for a prolonged period.