US: New home sales beat expectations; supply near 13-year high. Sales of new US single-family homes increased for a second straight month in Aug, but demand for housing has probably peaked after a COVID-19 pandemic-fueled buying frenzy. New home sales rose 1.5% to a seasonally adjusted annual rate of 740,000 units last month. July's sales pace was revised up to 729,000 units from the previously reported 708,000 units. (Reuters)
US: Leading economic index advances more than expected in Aug. The Conference Board released a report showing a bigger than expected increase by its index of leading US economic indicators in the month of Aug. The report said the leading economic index advanced by 0.9% in Aug after climbing by 0.8% in July. Economists had expected the index to rise by 0.6%. The bigger than expected increase by the index reflected positive contributions from eight of the ten indicators, including average weekly initial jobless claims, the ISM New Orders Index and building permits. (RTT)
EU: German Ifo business confidence falls for third month. German business confidence weakened for the third straight month in Sept as the supply bottlenecks dampened manufacturers' expectations, survey results from the ifo Institute showed. The business climate index dropped to 98.8 in Sept from 99.6 in Aug. The score was forecast to fall to 98.9. Companies were less satisfied with their current business. They were also more skeptical about the coming months. The current situation index declined unexpectedly to 100.4 from 101.4 in the previous month. (RTT)
EU: Italy consumer confidence improves in Sept. Italy's consumer confidence improved in Sept, survey results from the statistical office Istat showed. The consumer confidence index rose to 119.6 in Sept from 116.2 in Aug. Economists had expected a score of 115.8. The manufacturing confidence index decreased to 113.0 in Sept from 113.2 in the previous month. Economists had forecast a score of 112.6. The economic sentiment index grew to 143.6 in Sept from 132.4 in the prior month. (RTT)
UK: Retail sales growth slows to 6-month low in Sept. British retailers reported much slower growth in Sept after strong demand over the summer months, though shops expect a rebound in Oct despite growing supply chain difficulties. The Confederation of British Industry's monthly distributive trade survey showed the headline sales balance for retailers tumbled to +11 in Sept from +60 in Aug, its lowest level since March and below all forecasts. (Reuters)
Japan: Overall inflation sinks 0.4% on year in Aug . Overall inflation in Japan was down 0.4% on year in August, the Ministry of Communications and Internal Affairs said - shy of expectations for - 0.3%, which would have been unchanged from the July reading. Core consumer prices, which exclude volatile food costs, was unchanged on year. That matched forecasts following the 0.2% annual decline in the previous month. On a seasonally adjusted monthly basis, overall inflation was down 0.2% and core CPI eased 0.1%. (RTT)
Japan: Private sector contracts in Sept. Japan's private sector continued to contract in Sept but at a slower pace. The Jibun Bank composite output index rose to 47.7 in Sept from 45.5 in the previous month. A score below 50.0 indicates contraction. The service sector shrank at a slower pace, while growth in manufacturing eased in Sept. The services Purchasing Managers' Index advanced to 47.4 from 42.9 a month ago. The manufacturing PMI declined to 51.2 from 52.7 in Aug. (RTT)
Singapore: Industrial production growth eases in Aug . Singapore's industrial production increased at a softer pace in Aug, data from the Economic Development Board showed. Industrial output grew 11.2% YoY in Aug, after a 16.4%rise in July. Production was forecast to increase 8.8%. Excluding biomedical manufacturing, industrial production gained 13.6% yearly in Aug, following a 6.7% rise in the preceding month. On a monthly basis, industrial production grew 5.7% in July, after a 2.8%fell in the previous month. (RTT)
Taiwan: Export orders rise more than expected . Taiwan's export orders increased more than expected in Aug, data from the Ministry of Economic Affairs showed. Export orders advanced 17.6% YoY in Aug. Economists had expected a 20.7% growth. Orders for mineral products accelerated 112.4% annually in August and those of transport equipment gained 42.4%. Bookings for chemicals, and plastics and articles thereof; rubber and articles thereof increased by 56.1% and 45.3%, respectively. (RTT)
South Korea: Producer prices rise 0.4% in Aug . Producer prices in South Korea were up 0.4% on month in Aug, the Bank of Korea said. That's down from the upwardly revised 1.0% increase in July (originally 0.7%). On a yearly basis, producer prices jumped 7.3% - slowing from the upwardly revised 7.4% spike in the previous month (originally 7.1%). (RTT)
Homeritz (Outperform, TP: RM0.82): Commencement of civil proceedings . Homeritz has entered into civil proceedings with Khazanah Realty SB, in relation to the sale and purchase of 2 pieces of land. (Bursa Malaysia)
Comment: Homeritz has entered into a SPA to purchase 2 pieces of land from Khazanah Realty with a purchase price of RM5.7m subjected to the fulfilment of 3 conditions in Feb 2021. The litigation has been initiated by Homeritz as the defendant has failed to fulfil the conditions stated in the SPA which include obtaining the consent from the State Authority to transfer Lot 11722 from Khazanah Realty to Homeritz. We are not expecting the litigation to have a material impact on Homeritz’s earnings apart from the legal costs. As we have yet to factor in the potential capacity expansion arising from this land acquisition into our forecast, we are keeping our forecast unchanged. Maintain Outperform with a TP of RM0.82.
DNeX: Completes USD17m Avalon Oil acquisition. Dagang NeXchange's (DNeX) subsidiary Ping Petroleum Ltd has completed the acquisition of the remaining 50% stake in Avalon Oil Development. DNeX bought the stake from Sumitomo Corp's wholly-owned Summit Exploration and Production Ltd for USD5.0m with further contingent payments, giving a total purchase consideration of USD17.0m. (BTimes)
Federal International: Partners with China's SPIC to venture into the RE sector. Federal International Holdings (FIHB) will partner with China's State Power Investment Corporation (SPIC) in its first venture into the renewable energy (RE) business. On 21 Sept 2021, FIHB collaborated with a group of green-tech entrepreneurs and a multinational company to form Warrants RE Assets SB (WREA), whereby FIHB holds a 50% stake in the entity. The purpose of WREA is to invest in greenfield and brownfield renewable energy projects in Malaysia. (BTimes)
Hong Seng: Disposes hire purchase business for RM34.50m. Hong Seng Consolidated (HSC) today inked a share sale agreement with Robust Potential SB to sell two million ordinary shares representing 100% in Hong Seng Priority Management SB for RM34.50m. The disposal exercise will result in an estimated gain of approximately RM31.20m to HSC. (BTimes)
Minetech: Proposes 582.66m rights issue to kick off series of fundraising. Minetech Resources has proposed a renounceable rights issue of up to 582.66m new irredeemable convertible preference shares (ICPS) to kick off a series of fundraising exercises. The ICPS would be issued at an issue price of three sen each. (BTimes)
IPO: CEKD IPO shares oversubscribed by 131.61 times. The shares of CEKD has been oversubscribed by 131.61 times ahead of the group’s listing on the ACE Market of Bursa Malaysia Securities. (StarBiz)
The FBM KLCI might open with a cautious note today after stocks on Wall Street wavered on Friday and government debt sold off as investors kept a close eye on the unfolding Evergrande crisis and digested hawkish signals from several leading central banks. The US blue-chip S&P 500 index ended the day 0.1% higher, after falling as much as 0.4% early in the session. The advance — it’s third consecutive daily gain — helped to reverse the broad sell-off on Monday when market confidence had been shaken by Evergrande. The tech-focused Nasdaq ended both the session and the week flat. The market turmoil was evidenced in large redemptions from mutual and exchange traded funds over the past week, with investors pulling $24.2bn from global equity funds in the seven days to Wednesday. It marked the first weekly outflow this year, according to fund flows tracked by EPFR Global. The Europe-wide Stoxx 600 benchmark closed down 0.9%, although it ended the week up 0.3%. London’s FTSE 100 also advanced more than 1% for the week, even as it tallied a 0.4% decline on Friday.
Back home, Bursa Malaysia ended the week lower on lack of buying momentum. At 5pm, the benchmark FBM KLCI fell 7.28 points, or 0.47%, to 1,532.06, from Thursday’s close of 1,539.34. Regionally, Japan’s Nikkei 225 advanced 2.06% to 30,248.81, Hong Kong’s Hang Seng Index slid 1.3% to 24,192.16 and Singapore’s Straits Times Index shed 0.41% to 3,061.56.
Source: PublicInvest Research - 27 Sept 2021
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Created by PublicInvest | Mar 21, 2024