PublicInvest Research Headlines - 2 Oct 2020

Date: 02/10/2020

Source  :  PUBLIC BANK
Stock  :  KOSSAN       Price Target  :  15.60      |      Price Call  :  HOLD
        Last Price  :  6.07      |      Upside/Downside  :  +9.53 (157.00%)


US: Construction spending jumps much more than expected in Aug. With spending on private construction showing a significant increase, the Commerce Department released a report on Thursday showing US construction spending jumped much more than expected in the month of Aug. The report said construction spending surged up by 1.4% to an annual rate of USD1.4trn in Aug after climbing by 0.7% to an upwardly revised rate of USD1.39trn in July. Economists had expected construction spending to increase by 0.8% compared to the 0.1% uptick originally reported for the previous month. (RTT)

US: Manufacturing sector slows in Sept - ISM . US manufacturing activity unexpectedly slowed in Sept as new orders retreated from a more than 16-1/2-year high, in line with expectations of a moderation in economic growth after a fiscal stimulus boost over the summer. The ISM said on Thursday its index of national factory activity fell to a reading of 55.4 last month from 56 in Aug, which was the highest level since Nov 2018. Despite last month’s dip in the index, September marked the fourth straight month of growth. A reading above 50 indicates expansion in manufacturing, which accounts for 11.3% of the US economy. Economists polled by Reuters had forecast the index rising to 56.3 in Sept. (Reuters)

US: Labor market, income data point to drawn-out economic recovery. The number of Americans filing new claims for jobless benefits fell last week but remained at recession levels, while personal income dropped in Aug, underscoring the need for another government rescue package for businesses and the unemployed. The decline in initial claims reported by the Labor Department on Thursday likely reflected a decision by California, the most populous state in the nation, to suspend the processing of new applications for two weeks to combat fraud. Factory activity slowed in Sept, other data showed. Initial claims for state unemployment benefits decreased 36,000 to a seasonally adjusted 837,000 for the week ended Sept 26. Economists polled by Reuters had forecast 850,000 applications in the latest week. (Reuters)

EU: Eurozone manufacturing expansion strengthens in Sept. Euro area manufacturing expanded at a faster rate in Sept, largely led by the growth in Germany, while rising coronavirus infections pose a threat to the outlook. The seasonally adjusted Eurozone Manufacturing PMI rose to 53.7 in Sept from 51.7 in Aug, latest survey data from IHS Markit showed on Thursday, confirming the flash estimate released earlier. A reading above 50 suggests growth in the manufacturing sector. The euro area manufacturing sector has grown for three months in a row and the Sept growth marked the strongest expansion in over two years. (RTT)

EU: Italy jobless rate unexpectedly falls in Aug. Italy's jobless rate decreased in Aug, defying expectations for an increase, data from the statistical office ISTAT showed on Thursday. The jobless rate fell to 9.7% Aug from 9.8% in July. Economists had expected the rate to rise to 10.1%. The employment rate rose to 67.3% in Aug from 66.9% in the previous month. The number of employed increased by 83,000 persons from the previous month. The unemployment rate among the youth aged between 15 and 24, rose to 32.1% in Aug from 31.8% in the prior month. (RTT)

India: Manufacturing growth highest in 8-1/2 years. India's manufacturing activity rose to the highest in over eight-and-a-half years in Sept on robust demand, survey results from IHS Markit showed on Thursday. The headline IHS Markit manufacturing PMI, rose to 56.8 in Sept from 52.0 in Aug. Economists had expected a modest improvement to 52.8. Any reading above 50 indicates expansion in the sector. New business inflows increased in Sept, with the rate of expansion fastest since early-2012. Total sales increased with the renewed expansion in new export orders in Sept. (RTT)

Indonesia: Inflation rises in Sept. Indonesia's consumer price inflation rose in Sept after easing in the previous month, data from the statistics bureau showed on Thursday. Consumer prices rose 1.42% YoY in Sept, following a 1.3% increase in Aug. This was in line with economists' expectations. Prices for personal care and other services increased the most by 6.9% yearly in Sept. Prices for health, and food, beverage and restaurant rose by 3.2% and 2.4%, respectively. (RTT)

Philippines: Manufacturing PMI moves to 50.1 in Sept - IHS Markit. The manufacturing sector in the Philippines moved into expansion in Sept, the latest survey from IHS Markit showed on Thursday with a manufacturing PMI score of 50.1. That's up from 47.3 in Aug, and it moves above the boom-or-bust line of 50 that separates from expansion. Individually, new orders expanded for the first time since Feb, while production declined only marginally. Business sentiment improved to a seven-month high. Production volumes fell for the third month running in Sept, with firms often indicating that ongoing Covid-19 restrictions continued to hamper activity. (RTT)


Kossan (Neutral, TP: RM15.60): Sets aside RM50m for migrant workers remediation fee. Kossan said it has finalised a remediation plan for its migrant workers after extensively investigating the situation and consulting multiple stakeholders. "The total remediation fee to be paid to migrant workers is estimated at RM50m," it said. The first payment amounting to approximately RM10m will be paid by Nov, Kossan said. The remediation payment program will be completed within 18 months. (StarBiz)

GFM: Bags Petronas O&M contract at Pengerang. GFM Services has bagged a contract to provide operations and maintenance (O&M) services at Pengerang Integrated Complex (PIC) Village 1 & 2. The O&M works also cover all associated facilities, non-process building and gate houses at PIC. It secured the three-year contract from PRPC Utilities and Facilities SB and PETRONAS Refinery and Petrochemical Corporation SB. Under the Letter of Award, GFM’s scope of services comprises O&M services of buildings, common facilities and utilities, preservation of buildings and facilities, canteen operations and catering services, pantry consumables and stationeries supplies, PIC muster point maintenance and others. (StarBiz)

NTPM: Sells loss-making toilet rolls manufacturer for RM27.5m. NTPM Holdings said it is disposing of its toilet rolls and tissue manufacturing subsidiary, as the firm has continuously incurred losses with little prospects of a turnaround in the near future. The group is selling its entire 100% interest in NTMP Paper Mill (Bentong) SB to XSD International Paper SB for RM27.5m cash. The firm has a factory building and complex with a land area of 42.95k sqm and a built up area of 8k sqm in Bentong, Pahang. (The Edge)

Tan Chong: Explores business opportunities with Indonesia’s SGMW Motor in Malaysia and Thailand. Tan Chong Motor has teamed up with PT SGMW Motor Indonesia to explore opportunities in introducing PT SGMW's vehicle products to Malaysia and Thailand. It has entered into a MoU with PT SGMW to cooperate on the study of the potential and feasibility of the business opportunities. PT SGMW is a wholly-owned subsidiary of SAIC GM Wuling Automobile Co Ltd. It has a manufacturing plant in Greenland International Industrial Centre, Indonesia, built on a 600k sqm of land with a total investment cost of USD700m. The plant has a capacity to produce up to 120k vehicles annually. (The Edge)

IPO: Aneka Jaringan aims to raise RM46.16m from ACE Market IPO. Aneka Jaringan aims to raise RM46.16m from its ACE Market listing on Oct 20. The IPO exercise involves the issuance of 139.89m new shares at 33sen apiece, which brings its market capitalisation to RM177.57m. In its prospectus launched today, the proceeds raised would accelerate the company’s growth by increasing its fleet of machinery in Malaysia. Of the RM46.16m total proceeds, RM17.30m will be used to purchase rotary drilling rigs and crawler crane. The rest will be for repayment of borrowings (RM24.26m) and to defray IPO expenses (RM4.60m). (StarBiz)

Market Update

The FBM KLCI might open flat today after US stock benchmarks finished with modest gains in Thursday’s session as investors followed the fitful attempts by lawmakers to pass another fiscal stimulus package in Congress against the background of a slowing economic recovery from the coronavirus pandemic. The Dow Jones Industrial Average rose by 35.2 points, or 0.1%, to end at 27,816.90, off its intraday peak at 28,041.46, while the S&P 500 index climbed 17.8 points, or 0.5%, to 3,380.8. The Nasdaq Composite Index gained 159 points to finish at 11,326.51, leaving it up 1.4%. In Europe, the Stoxx Europe 600 index closed 0.2% higher, while the U.K.’s FTSE 100 also gained about 0.2%.

Back home, the FBM KLCI finished 8.05 points or 0.53% lower at 1,496.77 while Bursa Malaysia's Palm Oil Plantation index fell by a larger quantum as investors weighed a confluence of factors including the US Customs and Border Protection's detention order on palm oil produced by FGV Holdings Bhd.

Source: PublicInvest Research - 2 Oct 2020

Share this

Related Stocks

Chart Stock Name Last Change Volume 
KOSSAN 6.07 -0.18 (2.88%) 3,362,300 
GFM 0.18 +0.005 (2.86%) 2,290,000 
NTPM 0.72 +0.005 (0.70%) 12,965,300 
TCHONG 1.08 +0.02 (1.89%) 192,500 

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program

529  557  546  538 

Top 10 Active Counters
 KANGER 0.185+0.005 
 AT 0.200.00 
 BINTAI 0.795+0.10 
 KGROUP 0.060.00 
 MTRONIC 0.115+0.005 
 ASIABIO-OR 0.015+0.005 
 IRIS 0.36+0.005 
 VIVOCOM 1.01+0.205 
 FINTEC 0.105+0.01 
 SOLUTN 1.27+0.15 


1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!


1. Should we buy Top Glove since it has been plunging due its 28 factories shut down? Koon Yew Yin Koon Yew Yin's Blog
2. Jaks Resources - Jaks Hai Duong Power Plant Achieved Commercial Operation Date (COD) !!! DK
3. VIVOCOM: End of Day Report (26 Nov 2020) See Jovin
5. Kelington Group Berhad ("KGB") - Above Expectations (TP: RM2.30; +35% upside) by Kenanga Research Investment Ideas - Value and Growth
6. 【Growth成长股】AWC Berhad (7579) – Benefit from Strong Order Book Amounted Close to RM1Bil Sanitize and Disinfection Healthcare Stocks
8. How can you retire with RM2mil cash in Malaysia? Ant On The Street Blog