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PublicInvest Research

Author: PublicInvest   |   Latest post: Mon, 25 Jan 2021, 1:29 PM

 

PublicInvest Research Headlines - 1 Dec 2020

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Economy

US: Yellen to forge economic comeback as Biden’s Treasury pick. President-elect Joe Biden will take a significant step this week toward addressing the damage to the US economy inflicted by the coronavirus pandemic, as he names an economic team led by his choice for Treasury secretary, former Federal Reserve Chair Janet Yellen. In Yellen, Biden will have a battle-tested policy maker who can draw on her nearly two decades at the Fed, to help rebuild an economy in dire need of government cash and confidence. Biden has called for trillions of dollars in new stimulus to aid the small and mid-size businesses that are the nation’s jobs engine. (Bloomberg)

EU: Italy approves new stimulus package to bolster shrinking economy. Italy’s government has approved a fourth stimulus package to support businesses hit by the latest restrictions to stem the spread of the coronavirus. The package is worth EUR8bn (USD9.6bn), according to a statement published. It delays tax deadlines for companies and expands cash handouts for workers in tourism and the arts, which have been severely disrupted by the pandemic. The euro area’s third-largest economy has struggled to deal with the economic fallout from the pandemic. (Bloomberg)

EU: German inflation falls deeper into negative territory after VAT cut. German annual consumer prices fell further in Nov, pushed down by a VAT cut introduced as part of the government’s stimulus push to help Europe’s largest economy recover from the coronavirus shock, data showed. Consumer prices, harmonised to make them comparable with inflation data from other EU countries, fell 0.7% YoY after shrinking by 0.5% in the previous month, the Federal Statistics Office said. Nov’s preliminary data compared with a Reuters forecast for a 0.5% decline. (Reuters)

UK: Mortgages hit 13-year high, but consumers wary about borrowing. British lenders approved the most mortgages in more than 13 years in Oct, BoE data showed, suggesting no let-up yet in a post-coronavirus lockdown bounce-back in the country's housing market. But the figures also underscored a broader wariness about day-to-day borrowing among many consumers, as the country was hit by a second wave of Covid-19 cases. Mortgage approvals for house purchase hit 97,532, up from 92,091 in Sept and higher than all forecasts in a Reuters poll of economists. (Reuters)

China: Manufacturing sector picks up steam in Nov. The manufacturing sector in China continued to expand in Nov, and at a faster pace, the National Bureau of Statistics said with a manufacturing PMI score of 52.1. That beat expectations for a reading of 51.5 and it's up from 51.4 in Oct. It also moves further above the boom-or-bust line of 50 that separates expansion from contraction. The bureau also said its non-manufacturing PMI came in with a score of 56.4, beating expectations for 56.3 and up from 56.2 in the previous month. (RTT)

Japan: Industrial production jumps 3.8% in Oct. Industrial output in Japan climbed a seasonally adjusted 3.8% on month in October, the Ministry of Economy, Trade and Industry said. That was roughly in line with expectations and down from the 3.9% gain in Sept. On a yearly basis, industrial production sank 3.2%, missing forecasts for a fall of 2.5% following the 9.0% decline in the previous month. Contributing to the increase were business-oriented machinery, motor vehicles and electrical machinery - offset by weakness from electronic parts, transport equipment and chemicals. (RTT)

Markets

LKL: Gets USD40m contract to supply nitrile gloves to Hong Kong-based company. LKL International has bagged a contract worth USD40m (RM163m) to supply nitrile examination gloves to Shang Hong International (HK) Ltd. The contract is set to complete by Dec 2021. This is its second glove contract win following an earlier USD19m sales contract secured from Chinabased company. (The Edge)

Taliworks: Ventures into renewable energy market. Taliworks Corporation is venturing into the renewable energy (RE) market with the proposed acquisition of 4 solar projects, with an aggregate capacity of 19.0 mw peak, within the vicinity of the Kuala Lumpur International Airport. The company signed a conditional agreement with TerraForm Global Operating LP and several of its subsidiaries. (SunBiz)

Pharmaniaga: Sets up task force as it gears up to distribute Covid-19 vaccine. Pharmaniaga has set up a task force as it gears up to distribute the Covid-19 vaccine, which is expected to be available at the end of the 1Q next year, nationwide. Pharmaniaga has 26 solid years of vaccine logistics and distribution experience that covers constant temperature requirement for both -20°C and between 2°C-8°C. (The Edge)

Gets Global: Receives takeover offer at less than one quarter of market price from major shareholders. Gets Global received an unconditional mandatory takeover offer (MTO) at 55sen per share from its two largest shareholders ADA Capital Investments Ltd and Teong Lian Aik. The takeover offer price of 55 sen is less than one quarter of Get Global’s market price of RM2.73 as at 4.30pm yesterday. (The Edge)

Mah Sing: On track to achieving RM1.1bn sales target for 2020. Mah Sing Group has achieved property sales of about RM847.1m for the period ended Sept 30, 2020, or 77% of its 2020 sales target of RM1.1bn. The group has several new launches lined up in the 4Q, together with the well-received projects launched recently such as M Luna in Kepong and M Adora in Wangsa Melawati. (SunBiz)

Comfort Gloves: Records highest-ever net profit at RM90m. Comfort Gloves net profit for the 3Q ended Oct 31, 2020, stood at RM90.3m, up 1,119% from RM7.4m in the previous year’s corresponding quarter amid higher sales volume and average selling prices. Revenue for the quarter jumped 106% to RM276.7m from RM134.5m a year earlier. EPS shot up to 15.5sen from 1.3sen as a result. (The Edge)

MAHB: Lower revenue sends MAHB into the red for Q3. Malaysia Airports Holdings (MAHB) posted a net loss of RM319.72m for the 3Q ended Sept 30, 2020 compared to a RM197.87m net profit recorded in the same period of the previous year, mainly due to the decrease in revenue. Revenue for the period stood at RM396.69m, a 70.7% decline from RM1.36bn reported previously. (SunBiz)

MBSB: Makes RM258.24m net profit for 3Q. Malaysia Buildinbg Society (MBSB) net profit for the 3Q ended Sept 30, 2020 increased 51.76% to RM258.24m from a year ago, marking a recovery from being in the red for the last two quarters. Revenue went up 1.9% to RM765.57m as the group realised higher gains from financial investments at fair value. (SunBiz)

MARKET UPDATE

The FBM KLCI might open flat today as investors on Monday took some of their profits from the best month for stocks in decades, in which Covid-19 vaccine breakthroughs lifted economically sensitive sectors such as energy and financials. Wall Street’s leading benchmarks reached record levels in previous sessions and have posted double-digit gains for the month. For the day, the Dow fell 271.73 points, or 0.9%, to 29638.64, the S&P 500 slipped 16.72 points, or 0.5%, to 3621.63, and the Nasdaq fell 7.11 points, or 0.1%, to 12198.74. But those losses didn’t chip away much from stocks’ performance for the month. The Dow Jones Industrial Average rose 12%, marking its best month since January 1987. The S&P 500 soared 11% for its best showing since April, while the Nasdaq Composite climbed 12%. Europe’s benchmark Stoxx 600 index closed the day down 1% to end November with a 13.7% gain. The UK FTSE 100 has benefited from its relatively high concentration of economically-sensitive cyclical stocks, which have been popular since markets began looking ahead to economies reopening.

Back home, the FBM KLCI closed down 44.88 points or 2.79% at 1,562.71 after dropping in the final trading hour against a confluence of factors including lower crude oil prices and equity losses as investors weighed Malaysia's corporate financial results amid Covid-19 driven economic weakness. The regional markets also finished broadly lower with shares in Hong Kong leading the region. The Hang Seng was down 2.06% while Japan's Nikkei 225 lost 0.79% and China's Shanghai Composite gave away 0.49%.

Source: PublicInvest Research - 1 Dec 2020

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