PublicInvest Research

Author: PublicInvest   |   Latest post: Wed, 26 Jun 2019, 11:18 AM


PublicInvest Research Headlines - 21 Sept 2018

Author:   |    Publish date:


Global: OECD sees trade tensions hindering global growth. The global economy will continue to expand strongly in the coming years, but trade tensions could hinder investment and slow the pace of expansion, the Organization for Economic Cooperation and Development said. The Paris-based research body slightly lowered its targets for global growth Thursday, saying it now expects output to rise by 3.7% in each of 2018 and 2019. In May, it had expected output to grow by 3.8% this year and 3.9% next. “It’s not the end of the recovery, but the risks are piling up,” said Laurence Boone, the OECD’s chief economist. “Businesses are postponing or delaying their investment plans. Export orders are decelerating.” (The Wall Street Journal)

US: Jobless claims fall for third straight week to 48-year low. US filings for unemployment benefits unexpectedly fell for a third straight week to a new 48-year low, indicating a tight job market, Labor Department figures showed. The decline in applications suggests that the Sept payrolls report may show another solid gain. The claims data, covering the week containing the 12th of the month, coincide with the reference period for the Labor Department’s survey for the monthly figures. Businesses are holding on to existing staff -- besides adding new employees -- amid a shortage of skilled workers. (Bloomberg)

US: Existing home sales unchanged in Aug. US home sales flatlined in Aug but inventory increased for the first time in three years as the housing market continued to struggle despite strength across the broader economy. The National Association of Realtors said that existing home sales were unchanged at a seasonally adjusted annual rate of 5.34m units last month. It follows four straight months of monthly declines. A dearth of properties for sale has pushed up prices, sidelining many would-be homeowners. Supply has also been constrained by rising building material costs as well as land and labor shortages while rising mortgage rates are expected to slow demand. (Reuters)

US: Trump is denying product exclusions from new China tariffs. The Trump administration hasn’t put a process in place for companies to get exemptions from 10% tariffs it’s imposing on USD200bn of Chinese goods, unlike earlier rounds of the duties, four people familiar with the matter said. The US has justified its decision by saying that it’s giving companies more than three months to transition their supply chains away from China before it raises tariffs to 25% in Jan, according to one of the people. It’s unclear whether the government will start offering exclusions once that rate increase occurs next year. (Bloomberg)

EU: Pushes Oct Brexit agreement, threatens no deal. EU leaders will push for a Brexit deal next month but warned Prime Minister Theresa May that if she will not give ground on trade and the Irish border by Nov they are ready to cope with Britain crashing out. “Don’t worry, be happy,” joked EU chief executive Jean-Claude Juncker after telling reporters after a summit in Austria that the Europeans had full plans in place in the event there was no deal before Britain leaves next March. May promised new proposals to reassure Dublin that it would not get a “hard border” with the British province of Northern Ireland but warned she too could live with a no-deal outcome — though many round the summit table in picturesque Salzburg see that as more of a negotiating tactic than a credible threat. (Reuters)

UK: Aug retail sales unexpectedly gain in summer heatwave. UK retail sales unexpectedly increased last month as the warmest summer on record encouraged shoppers to splash out. Sales rose 0.3% from July, compared with a median estimate of a 0.2% decline in a Bloomberg survey. Figures for the previous month were also revised up, according to data from the Office for National Statistics in London. The increase was led by household goods such as furniture and electrical items. Sales of food and clothing fell on the month after strong gains in July. Excluding auto fuel, sales also rose 0.3%. The warm weather helped overall retail sales climb an annual 3.4% in the June to Aug period, compared with just a 2.1% gain last year, the ONS said. Stores also may have pushed discounts harder than in previous years. (Bloomberg)


Malaysia Smelting: Leases MB Inc land for mine dumps. Malaysia Smelting Corp (MSC) is leasing two pieces of land totalling 423 acres in Klian Intan, Perak owned by Menteri Besar Inc (Perak) (MB Inc) for dumping overburden, tailings and slime arising from ongoing tin mining activities at its open-pit tin mine. MSC said its wholly-owned subsidiary Rahman Hydraulic Tin SB has entered into a MoU with MB Inc to lease the two parcels of lands measuring 100 acres and 323 acres respectively. (The Edge)

Nova MSC: Bags RM4.6m contract in Singapore. Nova MSC's wholly-owned subsidiary, novaCITYNETS Pte Ltd (NCN), has bagged a RM4.6m contract from the Urban Redevelopment Authority of Singapore to implement and provide maintenance support for an Intelligent Code Checking System (ICCS). The contract marks Nova MSC's second government contract in Singapore after its RM15.4m contract from the Public Utilities Board, which was clinched in June 2018. (Bernama)

Dufu: Plans 1-for-2 bonus issue. Dufu Technology Corp has proposed a 1-for-2 bonus issue to enhance the marketability and trading liquidity of its shares. The exercise will involve the issuance of up to 87.7m bonus shares, on the basis of one bonus share for every two existing shares held on an entitlement date to be determined later, it said. The group expects the proposal to be completed by the 4Q of 2018. (The Edge)

AWC: Sues BUCG for failing to settle RM2m payment. AWC has filed a lawsuit against BUCG (M) SB for failing to settle RM2.06m in outstanding payment for subcontract works of a project developing one block of serviced apartments and a 55-storey hotel at Jalan Conlay. AWC said the suit is not expected to have any material financial and operational impact on the group. "Further announcement will be made as and when there are material developments on the matter," it added. (The Edge)

Eco World: Posts higher profit in 3Q as property sales rebound. Eco World Development Group said its home ownership campaign launched in June boosted the group’s sales and profit in the third quarter ended July 31. Net profit rose 47.6% to RM38.5m on revenue of RM490m. As at Aug 31, total sales achieved has reached RM2bn, which is more than double the total sales of RM923m recorded in the 1H of the financial year.

Selangor Properties: 3Q net profit up 70% on higher forex gain. Selangor Properties' net profit surged 70.2% to RM33.2m in the 3QFY18 from RM19.5m a year ago, mainly due to higher forex gain of RM16.3m. EPS rose to 9.66 sen for 3QFY18 from 5.68 sen for 3QFY17. Revenue for the quarter grew 23.5% to RM39.3m from RM31.8m in 3QFY17, mainly due to higher contribution from its Australian operations and higher property development revenue achieved in Malaysia. (The Edge)

Scientex: Posts 22% higher 4Q net profit of RM88.3m. Scientex posted its best-ever quarterly performance in its 4QFY18, with a net profit of RM88.3m, 22% higher than in the same quarter last year as revenue grew 13% to RM733.1m. The group proposed a final singletier dividend of 10 sen per share, which would bring the total payout for the year to 20 sen per share. It said the performance was mainly attributed to higher sales volume as well as maiden contributions from Klang Hock Plastics Industries. (StarBiz)

Market Update

The FBM KLCI might edge higher at opening today after the S&P 500 and Dow Jones Industrial Average hit record highs as Wall Street joined a global stock market rally largely driven by the view that the latest trade tariffs imposed by the US and China were likely to inflict less economic damage than many had feared. Emerging market assets continued to stage a broad rally, with the FTSE EM equity index rising for the third day in a row and currencies including the South African rand, Brazilian real and Argentine peso gaining ground against the dollar. The latest record highs for US stocks came as the dollar index hit its lowest level for 10 weeks, marking a 3.2 percent retreat from a 15-month high struck in August. On Wall Street, the S&P 500 rose 0.8% to record close of 2,930, after earlier hitting an all-time intraday peak of 2,935. The Dow ended 1% higher at 26,657, just off the day’s high of 26,697. The tech-heavy Nasdaq Composite also gained 1% but ended about 1.3% short of its own intraday all-time peak. European stocks enjoyed similarly robust gains. The pan-regional Stoxx 600 ended 0.7% higher, with the Xetra Dax in Frankfurt rising 0.9% and London’s FTSE 100 up 0.5%.

Back home, the FBM KLCI index gained 2.99 points or 0.17% to 1,803.70 points on Thursday. Trading volume decreased to 1.94bn worth RM2.02bn. Market breadth was negative with 404 gainers as compared to 412 losers. The regional markets finished mixed with the Hang Seng gained 0.26% and the Nikkei 225 rose 0.01%. The Shanghai Composite lost 0.06%.

Source: PublicInvest Research - 21 Sept 2018

Share this

Related Stocks

Chart Stock Name Last Change Volume 
MSC 0.88 0.00 (0.00%) 82,000 
NOVAMSC 0.10 +0.005 (5.26%) 277,800 
DUFU 1.51 0.00 (0.00%) 906,500 
ECOWLD 0.845 -0.005 (0.59%) 428,800 
SCIENTX 8.56 0.00 (0.00%) 137,300 

  Be the first to like this.


351  269  527  746 

Top 10 Active Counters
 PHB-WB 0.0050.00 
 HSI-C5J 0.245-0.01 
 HSI-C5P 0.345+0.005 
 LAMBO 0.0650.00 
 IMPIANA 0.040.00 
 VS 1.09-0.03 
 HSI-H6Q 0.285-0.015 
 VELESTO 0.300.00 
 FOCUS 0.18+0.02 
 XINGHE 0.03+0.005 


3. AirAsia opens RedBeat digital arm to investors ahead of possible IPO Good Articles to Share
4. AirAsia Group - AAG to Thrive HLBank Research Highlights
5. Mplus Market Pulse - 26 Jun 2019 M+ Online Research Articles
6. E.A. Technique (M) Berhad - Too Cheap To Ignore PublicInvest Research
7. This One Habit Will Make You Poor Forever Good Articles to Share
8. VS Industry Berhad - As Expected PublicInvest Research
Partners & Brokers