Economy

Global: OECD ups global growth forecast for next year, lowers 2021 outlook. The OECD raised the growth projection for next year, while lowering the same for this year, and expressed concern over the increasingly uneven nature of the economic recovery from the slump caused by the pandemic as well as rising inflationary pressures. Global growth projection for next year is now 4.5% versus 4.4% forecast in May, the Paris-based think tank said in an interim report released. (RTT)

US: Current account deficit widens to 14-year high in 2Q. The US current account deficit increased to a 14-year high in the 2Q as businesses boosted imports to replenish depleted inventories amid robust consumer spending. The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, rose 0.5% to USD190.3bn last quarter. (Reuters)

US: Housing starts beat expectations in August. US homebuilding increased more than expected in August, likely boosted by an easing in lumber prices, though land and labour shortages remain challenges. Housing starts advanced 3.9% to a seasonally adjusted annual rate of 1.615m units last month. Data for July was revised up to a rate of 1.554m units from the previously reported 1.534m units. (CNBC)

UK: Manufacturing orders gauge hits record high in Sept: CBI. A record share of British manufacturers reported rising new orders this month but global supply chain problems and labour shortages held back growth in output, a survey showed. The Confederation of British Industry’s monthly manufacturing order book balance rose to +22 in Sept from +18 in August, its highest level since records started in 1977. (Reuters)

UK: Public borrowing falls less than expected as debt costs rise. British public borrowing declined by less than expected in August, highlighting the hefty ongoing costs of the COVID-19 pandemic and a rise in debt interest payments as inflation picked up. Public sector net borrowing, excluding state-controlled banks, fell to GBP20.5bn in August, down 21% from August a year earlier, but well above economists’ average GBP15.6bn forecast in a Reuters poll. (Reuters)

Japan: Land prices fall as COVID-19 hurts tourism, domestic demand. Japanese land prices fell for the second straight year as the country’s closed borders and state of emergency curbs to combat the coronavirus pandemic hit demand for new restaurants and hotels. Overall property prices in the world’s third-largest economy fell 0.4% in the year to July after last year’s 0.6% decline, which was the first fall in three years. (Reuters)

Markets

Perak Transit (Outperform, TP: RM0.53): Issues RM100m Islamic notes under expansion plan. Perak Transit issued a second tranche of RM100m Islamic medium-term notes (IMTN) to finance its working capital requirement and capital expenditure for the development of its new transportation terminal in Bidor. (Starbiz)

Solution Group: To complete supply of CanSino vaccine to Health Ministry. Solution Group is expected to complete its supply of 3.5m doses of CanSino Biologics Inc’s single-dose Convidecia Covid-19 vaccine to MOH by Nov. A total of 300,000 doses were handed to the MOH last month, while 2.6m doses will be delivered by end Oct, with the entire supply of 3.5m doses to be completed by Nov. (Sunbiz)

YB Ventures: Resumes manufacturing operations. YB Ventures has resumed its manufacturing operations in Kulai, Johor, as most of its approximately 600 local and foreign operational workers have been fully vaccinated. (Sunbiz)

Haily: Secures Johor project worth RM24m. Haily Group has accepted a letter of award from Gunung Impian Development SB for a terrace residential project in Tebrau, Johor Baru worth RM24m. The contract awarded by Gunung Impian Development is a fixed price contract. (Starbiz)

Tanco: Bags land reclamation works in Melaka for Tanjung Bruas port. Tanco Holdings has received a letter of award (LoA) for the EPCC of the proposed reclamation of land measuring approximately 120 acres in Melaka. (The Edge)

Ekovest: Back in red in 4QFY21 on deferred tax reversal. Ekovest slipped back into the red of RM2.66m in 4QFY21, hit by higher tax despite strong revenue and pre-tax profit recorded. (The Edge)

Kronologi Asia: Turns in improved performance for 3Qin a row. Kronologi Asia reported a net profit of RM5.11m for 2QFY22, attributed to growth in revenue from Singapore and the Philippines and from its enterprise data management infrastructure technology service. (Sunbiz)

Advancecon Holdings: Narrowed net loss to RM2.5m for 2QFY21. Advancecon Holdings' net loss narrowed to RM2.5m in 2QFY21 from a net loss of RM6.86m recorded in 2QFY20. (BTimes)

Comfort Gloves: Strong earnings but weaker QoQ as prices weigh. Comfort Gloves posted a strong set of financial results in 2QFY22 with net profit up 248% to RM148.82m from RM42.79m a year ago but the performance was weaker QoQ. (Starbiz)

Southern Steel: Posts RM47.93m net profit in FY21. Southern Steel registered a net profit of RM47.93m in the FY21, largely thanks to higher selling prices and cost improvement. (The Edge)

BLD Plantation: 1Q net profit jumps almost four times to RM16m. BLD Plantation’s net profit for 1QFY22 increased almost four times to RM16.21m from RM4.42m a year ago. (The Edge)

Market Update

The FBM KLCI might open higher today after global stock markets on Tuesday clawed back losses from the heaviest sell-off in months as investors bet that policymakers would step in to prevent a calamitous fallout if the Chinese property developer Evergrande defaulted. However, late selling pressure erased bigger gains on the Nasdaq and pushed the benchmark S&P 500 share index 0.1% lower at the close, having gained as much as 0.8% in morning trading in New York. The index had spent most of the day in positive territory, in line with global bourses, after tumbling 1.7% on Monday in its sharpest fall since May. The technology-heavy Nasdaq Composite added 0.2 per cent for the day, having dropped 2.2 per cent a day earlier. Meanwhile, Europe’s Stoxx 600 benchmark closed up 1% following the continent-wide benchmark’s steepest dive in nine weeks. Frankfurt’s Xetra Dax jumped 1.4% while London’s FTSE 100 ended the session 1.1% higher.

Back home, the FBM KLCI ended slightly higher as bargain hunting activities emerged after seven straight days of losses, lifted mainly by telco, gaming, and banking stocks. At 5pm, the benchmark FBM KLCI gained 2.55 points, or 0.17%, to 1,530.44, from Monday’s close of 1,527.89. The index, which opened 3.18 points weaker at 1,524.71, moved between 1,521.44 and 1,533.11 throughout the day. A Hong Kong gauge of real-estate firms steadied, after developers disputed a report of pressure from the Chinese government. Mainland China’s stock markets remained closed for a two-day holiday on Tuesday.

Source: PublicInvest Research - 22 Sept 2021