PublicInvest Research

Author: PublicInvest   |   Latest post: Fri, 13 Dec 2019, 10:07 AM


PublicInvest Research Headlines - 24 Oct 2019

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Global: IMF trims asia's growth outlook on heightened global uncertainty. The International Monetary Fund downgraded Asia's growth outlook citing prolonged global policy uncertainty and slowing growth in China and India, and highlighted rising downside risks to growth. According to the latest economic assessment for Asia and the Pacific, Asia will grow only 5% this year instead of 5.4% projected earlier due to weak trade and investment. This would be the slowest expansion since the global financial crisis. The IMF said Asia's near term policy priorities should aim at preventing a sharp growth slowdown, while reducing vulnerabilities. (RTT)

EU: Draghi to bid adieu amid policy split – ECB preview. European Central Bank President Mario Draghi will be chairing his final monetary policy meeting, but the savior of euro known for his buzzwords "whatever it takes", leaves behind a legacy marred by controversy. Draghi is unlikely to announce any monetary policy change after the Governing Council meeting. The Italian economist's departure comes at a time when growth in the 19-nation euro area is sagging and inflation is far away from the ECB's goal of "below, but close to 2%". (RTT)

EU: Consumer confidence at 10-month low. Eurozone consumer confidence weakened more-than-expected in October to its lowest level in 10 months, preliminary data from the European Commission showed on Wednesday. The flash consumer confidence index fell to -7.6 from - 6.5 in September. Economists had forecast a score of -6.7. The latest reading was the lowest since December, when it was -7.8. The EU consumer confidence index shed 0.9 points to reach -7.3 in October. The European Commission is set to release the final figure for consumer confidence along with the economic sentiment data on October 30. (RTT)

China: Minister pledges measures to support trade, Caixin says. China will roll out measures soon “to promote high-quality development of trade,” Commerce Minister Zhong Shan was cited as saying in a report. The moves aim to upgrade traditional industries and increase the quality and added value of the nation’s exports, according to comments Zhong made at a committee meeting of the National People’s Congress, China’s legislature, cited in Caixin. Policy makers will “strengthen policy reserves and actively handle the trade frictions between China and the U.S.,” Zhong said. (Bloomberg)

Indonesia: Fourth rate cut on the cards for Bank Indonesia. Fresh off the announcement of a new government in Indonesia, the central bank is poised to cut its benchmark interest rate for a fourth straight month to help bolster Southeast Asia’s largest economy. Bank Indonesia will probably reduce its key rate by 25 basis points to 5%, according to 23 of the 30 economists surveyed by Bloomberg. The rest see no change. Deputy Governor Dody Budi Waluyo gave a strong signal last week that another rate cut was on the cards, saying policy makers need to support growth. (Bloomberg)

Singapore: Inflation steady in Sept. Singapore's consumer prices increased at a steady pace in Sept, data from the Monetary Authority of Singapore and the Ministry of Trade and Industry showed. The consumer price index rose 0.5% YoY in Sept, the same rate as seen in Aug. The rate came in line with economists' expectations. MAS core inflation, which excludes the costs of accommodation and private road transport, came in at 0.7% in Sept versus a 0.8% increase in the previous month. (RTT)


London Biscuits (Trading Sell, TP: RM0.12): Agrees to cooperate in interim liquidation process. London Biscuits (LBB) has pledged cooperation in the interim liquidation process after the High Court today approved the appointment of an interim liquidator. The LBB said Lim San Peen of PricewaterhouseCoopers Advisory Services SB has been appointed as the interim liquidator. “Property includes any cash at bank or any registered trademarks, intellectual property or patents held by LBB,” it added. (The Edge)

Datasonic: Partners South Korean firm to develop biometric applications. Datasonic Group has inked a shareholders agreement with South Korea’s Digent Co Ltd to form a JV company to jointly develop and market what is termed the next generation biometric applications. Under the agreement, both parties will jointly form a company named Datasonic Digent SB (DDSB) in which Datasonic will have 60% equity, while Digent will hold 40%. It said the collaboration will provide it an opportunity to expand its current range of biometric technology solutions, systems and services. (The Edge)

Kelington: Liquid carbon dioxide plant in Terengganu kicks off. Kelington Group said operations commenced at its liquid carbon dioxide (LCO2) plant in Kemaman, Terengganu. It said that the plant operated by its 97.2%-owned subsidiary Ace Gases SB, can produce up 50,000 tonnes of LCO2 per year. Kelington said Ace Gases signed an agreement with Petroliam Nasional (Petronas) in Nov 2017 for the supply of carbon dioxide waste gas. The tenure of the agreement is 15 years commencing in 2019, and the renewal is subject to mutual agreement of the parties upon expiry. (The Edge)

Pestech: Inks MoU with PKFZ to provide roof top solar power solutions. Pestech International is exploring opportunities to provide roof top solar power solutions and establish a green renewable energy initiative programme in the free commercial and industrial zone in Port Klang. Pestech said this will be done in collaboration with Port Klang Free Zone SB (PKFZ). The MoU is in line with the transformation master plan launched by PKFZ. (The Edge)

HSS Engineers: Associate bags Pan Borneo job. HSS Integrated SB (HSSI), an associate company of HSS Engineers, has been appointed as the independent consulting engineer by the Works Ministry for the Pan Borneo Highway project in Sabah. The group said the contract was valued at RM12.86m, and that the work was expected to be completed by Dec 31. (SunBiz)

Barakah: EXIM Bank recalls facility, seeks USD43.59m. Barakah Offshore Petroleum’s wholly owned subsidiary Kota Laksamana 101 Ltd (KL101) has received a notice of termination, recall and demand from Export-Import Bank of Malaysia (EXIM Bank) for owing the bank USD43.59m (RM183m). “EXIM Bank is now exercising its right to recall and/or terminate the facility agreements. An amount of USD43.59m as at Oct 15, 2019 has been stated in the notice being total amount due and owing by KL101 to EXIM Bank. (SunBiz)

Gadang: 1Q net profit slips 10% on lower property sales. Gadang Holdings’ net profit for its 1QFY20 fell 10% YoY to RM14.8m, dragged by lower property contribution. This was despite a 14% YoY rise in revenue to RM147.6m, as it recognised higher work progress at its ongoing construction projects. Higher revenue and profit were also recorded at its utility division, thanks to lower operating expenses and favourable foreign exchange translation effect in the current quarter. (The Edge)

Market Update

The FBM KLCI might open flat today as US stocks eked out modest gains Wednesday after investors digested a slew of earnings reports from some of America’s largest companies, including Dow components Caterpillar and Boeing, shares of which rose despite both companies reporting weaker-than expected earnings declines. The Dow Jones Industrial Average rose 45.85 points, or 0.2%, at 26,833.95, while the S&P 500 index added 8.53 points to reach 3,004.52 a gain of 0.3%. The Nasdaq Composite Index advanced 15.50 points, or 0.2%, hitting 8,119.79. Meanwhile, UK Parliament’s rejection of Prime Minister Boris Johnson’s legislative schedule for Brexit reduced the likelihood of a departure by Oct. 31 or a no-deal exit from the EU. The U.K. government has already asked for an extension to the end of January 2020, and European Council President Donald Tusk said on Twitter that he would recommend that request is granted. The Stoxx Europe 600 closed 0.1% higher at 395.03.

Back home, the FBM KLCI index lost 5.30 points or 0.34% to 1,568.79 points on Wednesday. Trading volume decreased to 2.61bn worth RM1.69bn. Market breadth was negative with 363 gainers as compared to 442 losers. In the region, China’s CSI 300 index finished off 0.6% at 3,871.08 and the Shanghai Composite Index slipped 0.4% to 2,941.62, while Hong Kong’s Hang Seng Index fell 0.8% to reach 26,566.73. Japan’s Nikkei 225 gained 0.3% to 22,625.38.

Source: PublicInvest Research - 24 Oct 2019

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