US: 2Q growth likely to be revised higher after slew of strong data. US economic growth for the 2Q is likely to be revised higher following a recent raft of stronger than initially thought data covering that period, which reflected the economy’s reopening amid improved public health. The Commerce Department’s quarterly services survey, or QSS report, added to a flow of data such as retail sales and inventories in suggesting that GDP grew much faster than the 6.5% annualized rate reported by the government in its advance estimate last month. (Reuters)
US: Leading economic index increases slightly more than expected in July. The Conference Board released a report showing its index of leading US economic indicators increased by slightly more than expected in the month of July. The leading economic index advanced by 0.9% in July after rising by a downwardly revised 0.5% in June. Economists had expected the index to climb by 0.8% compared to the 0.7% increase originally reported for the previous month. (RTT)
US: Weekly jobless claims drop to new pandemic-era low. A report released by the Labor Department showed a continued decrease in first-time claims for US unemployment benefits in the week ended Aug 14th. The initial jobless claims fell to 348,000, a decrease of 29,000 from the previous week's revised level or 377,000. Economists had expected jobless claims to edge down to 363,000 from the 375,000 originally reported for the previous week. (RTT)
US: Philly Fed factory index falls in July to lowest since Dec. Growth in factory activity in the US mid-Atlantic region slowed for the fourth consecutive month in Aug after hitting its highest pace in nearly half a century earlier this spring, a survey showed. The business activity index fell to 19.4, the lowest since Dec, from 21.9 in July. That was below economists’ expectations for a reading of 23.0. Any reading above zero indicates expansion in the region’s manufacturing. (Reuters)
UK: Spending on cards dips to 94% of pre-pandemic level. Spending on credit and debit cards in Britain fell in the week to Aug. 12 to 94% of its level just before the pandemic, down by 5 percentage points from the previous week, according to payment data provided by the Bank of England. Separate figures published by Britain’s statistics office showed online job adverts on the Adzuna website decreased marginally to 128% of their February 2020 level. (RTT)
China: Seen holding benchmark rate steady in Aug, but weak data fans rate cut talk. China is expected to keep its benchmark lending rate unchanged for the 16th straight month at its August fixing on Friday, but some believe a cut may be needed soon amid signs the country’s economic recovery is losing steam, a survey showed. 78% of 32 participants, in the snap poll predicted no change in either the one-year Loan Prime Rate (LPR) or the five-year tenor. (Reuters)
Hong Kong: Inflation rises in July. Hong Kong's consumer price inflation increased in July, data from the Census and Statistics Department showed. The composite consumer price index rose 3.7% YoY in July, following a 0.7% increase in June. Excluding the effects of all one-off relief measures, the composite consumer price index increased 1.0% yearly in July, following a 0.4% rise in the previous month. (RTT)
Australia: Unemployment rate falls to 4.6% in July. The jobless rate in Australia came in at a seasonally adjusted 4.6% in July, the Australian Bureau of Statistics said well beneath expectations for 5.0% and down from 4.9% in June. The Australian economy added 2,200 jobs last month versus expectations for the loss of 46,200 jobs following the addition of 29,100 jobs a month earlier. The participation rate came in at 66.0%, in line with expectations and down from 66.2% in the previous month. (RTT)
South Korea: Producer Prices jump 0.7% in July. Producer prices in South Korea spiked 0.7% on month in July, the Bank of Korea said, accelerating from 0.5% in June. On a yearly basis, producer prices surged 7.1% after two straight months at 6.6%. Individually, prices for agricultural products were up 1.5% on month and 8.4% on year, manufacturing products rose 1.0% on month and 11.8% on year, utilities gained 0.7% on month and 1.8% on year and services rose 0.4% on month and 2.3% on year. (RTT)
Indonesia: Central bank keeps rates at record lows, prepares for US tapering. Indonesia’s central bank held its benchmark interest rate at a record low as it tries to continue to support the economy’s recovery from the coronavirus pandemic without adding downward pressure on the rupiah currency. Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 3.50%, where it has been since Feb, as expected by the majority of economists in a poll. Its two other main rates were also kept unchanged. Indonesia’s economy grew a bigger-than-expected 7.07% in the 2Q, but some worry coronavirus restrictions imposed in July could cloud the outlook. (Reuters)
Serba Dinamik (Neutral, RM0.44): S&P downgrades rating further to 'CCC' from 'B-' on growing refinancing risks. S&P Global Ratings has downgraded Serba Dinamik Holdings lower to “CCC” from “B-” previously to reflect the company’s sizable debt maturities of some RM1.7bn within the next nine months. It also has a negative outlook on the company to reflect its view of the refinancing risk the company faces, given its weakened access to funding, coupled with sizable debt maturing in the near term. (The Edge)
SCIB: Nominates Nexia as new auditor after KPMG's resignation. Sarawak Consolidated Industries (SCIB), has nominated Nexia SSY PLT as its new external auditor for the FYE June 30, 2021, following the departure of KPMG PLT last month. (The Edge)
Econpile: Bags RM23m earthworks contract from TAR University College. Econpile Holdings has bagged a contract from Tunku Abdul Rahman University College to undertake earthworks, piling, infrastructure and related works in Setapak for RM22.69m. (The Edge)
Bright Packaging: In JV to develop oil palm estate in Sarikei. Bright Packaging Industry has entered into a joint venture agreement with a plantation firm in Sarawak. The project involved the development of 1,921ha of land in Sarikei with a total plantable area for the purpose of oil palm cultivation estimated at 1,152ha. (StarBiz)
Kumpulan H & L High-Tech: Buys RM14m land in Perak for future investment. Kumpulan H & L High-Tech is buying a land in Perak, together with a 1.5 storey hypermarket constructed on the property, for RM13.88m. It is buying the property located in Mukim Hulu Kinta from Gopeng Road Development Company SB for the group’s future investment. (The Edge)
G Capital: Unit sign renewable energy power purchase agreement with TNB. G Capital's 96%-owned subsidiary, Gunung Hydropower SB, has signed a renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB). Gunung Hydropower was granted a feed-in approval by the Sustainable Energy Development Authority Malaysia in respect of the 10-mw low-head mini-hydropower plant in Sungai Perak, Salu in the vicinity of the Lenggong District, Perak. (The Edge)
OCR: Initiates another arbitration proceeding against contractor over construction delay. OCR Group subsidiary has commenced arbitration proceedings against a contractor over alleged breaches of obligations concerning a delayed housing project in Kuantan. OCR said wholly-owned OCR Properties (Kuantan) SB is claiming RM29m from Kencana Amanjaya SB for losses and damages arising from the delay. (The Edge)
HSS Engineers: Bids for RM437m of infrastructure projects. HSS Engineers is tendering for RM437m of projects across the transportation, port and water sectors. The amount was higher than the RM300m tender book in the preceding quarter ended March 2021. (BTimes)
The FBM KLCI might open flat today after stocks in Europe slid and Wall Street wobbled, as investors sought safety in government bonds on expectations of tightening US monetary policy and slowing global growth. Wall Street’s S&P 500 index gyrated, swinging from early morning losses to lunchtime gains. A further move lower in the early afternoon was again quickly erased, with the index ending the day 0.1% higher. The Nasdaq Composite also whipsawed in afternoon trading and was 0.1% higher on the day. The moves in US hours followed big European bourses that had also come under pressure, with London’s FTSE 100 and the broad Europe Stoxx 600 notching their worst performances in a month, both closing 1.5% lower for the day. Frankfurt’s Dax fell 1.3%, and the Cac 40 in Paris declined 2.4%.
Back home, the FBM KLCI ended lower in line with the retreat by other Asian indices, following Wall Street’s slide that came after the US Federal Reserve (Fed) minutes signaled a pullback in stimulus measures. The benchmark index closed 10.29 points or 0.67% lower at 1,514.95 after lingering in negative territory for the entire session. In the region, Japan's Nikkei 225 dropped 1.11%, South Korea's Kospi plummeted 1.93%, Hong Kong’s Hang Seng Index fell 2.13% and the Shanghai Stock Exchange Composite Index closed down 0.57%.
Source: PublicInvest Research - 20 Aug 2021
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Created by PublicInvest | Mar 21, 2024