PublicInvest Research

PublicInvest Research Headlines - 29 Sept 2021

PublicInvest
Publish date: Wed, 29 Sep 2021, 11:07 AM
PublicInvest
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An official blog in I3investor to publish research reports provided by PublicInvest Research team.

All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to: https://www.publicinvestbank.com.my/pbswecos/default.asp

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Economy

US: Powell warns of upside risks to inflation during congressional testimony. Fed Chair Jerome Powell will warn members of the Senate Banking Committee about upside risks to inflation. In prepared remarks, Powell predicted inflation will remain elevated in the coming months before moderating. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer run 2% goal. (RTT)

US: Consumer confidence unexpectedly continues to slump in Sept. A report released by the Conference Board unexpectedly showed a continued deterioration in US consumer confidence in the month of Sept. The Conference Board said its consumer confidence index tumbled to 109.3 in Sept from an upwardly revised 115.2 in Aug. The decrease surprised economists, who had expected the index to inch up to 114.8 from the 113.8 originally reported for the previous month. (RTT)

EU: German consumer confidence strongest since Apr 2020. The forward-looking consumer confidence index rose to +0.3 points from - 1.1 in Sept. The score was forecast to fall further to -1.5. The consumer climate index has reached its highest level since Apr 2020. Both economic and income expectations as well as the propensity to buy advanced in Sept. The economic sentiment indicator gained 7.7 points to 48.5 points in Sept. (RTT)

EU: French consumer confidence at 3-month high. French consumer confidence improved to a three-month high in Sept, survey results from the statistical office Insee showed. The consumer sentiment index rose more-than-expected to 102 in Sept from 99 in Aug. The reading was forecast to rise to 100. The latest score was the highest since May. (RTT)

China: Industrial profits growth slows In Aug. China's industrial profits continued to grow at a slower pace as higher input prices as well as shortage of materials lifted production cost, the National Bureau of Statistics reportedly said. Industrial profits increased 10.1% YoY in Aug, following an annual growth of 16.4% in July. During Jan to Aug period, industrial profits advanced 49.5% from the same period last year. (RTT)

South Korea: Consumer sentiment improves in Sept. Consumer confidence in South Korea picked up steam in Sept, the latest survey from the Bank of Korea showed with a Composite Consumer Sentiment Index score of 103.8 - up from 102.5 in Aug. Consumer sentiment regarding current living standards and their future outlook were unchanged at 91 and 96, respectively. (RTT)

Markets

Boustead Plantations: Disposes five parcels of land for RM429m. Boustead Plantations (BPB) plans to dispose of five parcels of its land totalling 664 hectares in Kulai, Johor for RM429m. The company signed a SPA with SIPP Power SB (SIPP Power) for the disposal, part of the rebalancing efforts of its asset portfolio. BPB is expected to realise a total estimated gain of RM323m upon completion of the disposal. (BTimes)

PCCS Group: To see earnings contribution from hire purchase biz. PCCS Group expects its hire purchase business, which began this month with an RM5m loan book, to contribute to the current FYE 31 March 2022. Group managing director David Chan Wee Kiang is confident that Southern Auto Capital SB, the company's hire purchase business, will start contributing revenue now that Melaka has entered Phase Two of the National Recovery Plan. (BTimes)

George Kent: Accepts MRCB's RM53m cash offer for 50% stake in LRT3 JV. George Kent (M) said it has accepted Malaysian Resources Corp's (MRCB) RM53m cash offer for its 50% stake in MRCB George Kent SB (MRCBGK). MRCBGK is a 50:50 joint venture (JV) company between MRCB and George Kent and is the turnkey contractor of the RM16.6bn Light Rail Transit Line 3 (LRT3) project. (The Edge)

KNM: Secures RM13.4m pre-fab tank contract for Pulau Indah power plant. KNM Group, which is involved in oil and gas (O&G) equipment and services, has secured a contract worth RM13.4m to build a pre-fabrication tank for a combined cycle power generating facility of up to 1,200MW at Pulau Indah, Selangor. (The Edge)

MYEG: Philippines JV rolls out online payment services for income tax, economic zone fees. MY EG Services’ (MYEG) 40%-Philippines joint venture (JY) I-Pay MYEG Philippines Inc (MYEG Philippines) is rolling out two e-government services in the Philippines — the online payment of income tax to their Bureau of Internal Revenue, and the payment of fees to the Philippine Economic Zone Authority (PEZA). (The Edge)

Icon Offshore: Unit secures drilling rig contract extension for four wells. Icon Offshore said its subsidiary has secured a contract extension for the provision of its jack-up drilling rig involving works for four wells. This is an extension of the earlier contract for eight wells secured by the subsidiary, Perisai Offshore SB, in Dec 2020 from Petrofac Ltd. (The Edge)

Reservoir Link: Secures contract from Sarawak Shell/Sabah Shell Petroleum Company. Reservoir Link Energy has secured a contract from Sarawak Shell Bhd/Sabah Shell Petroleum Company Ltd (SSB/SSPC) for the provision of slickline equipment and services. (The Edge)

Reservoir Link: To seek transfer of listing to Main Market. Reservoir Link Energy, currently listed on the ACE Market of Bursa Malaysia Securities, has proposed to transfer its listing to the Main Market of Bursa Securities, having met all the relevant requirements under the Equity Guidelines of Securities Commission Malaysia and the Main Market Listing Requirements of Bursa Securities. (SunBiz)

Market Update

US benchmarks tumbled overnight on concerns that the Federal Reserve will act sooner-than-expected on its tapering plans, as 10- year US Treasury yields also rose to a 3-month high of 1.567%. Lawmakers continuing with their budgetary stalemate also added to market woes. Technology-based stocks were a drag on the broader market, with the Nasdaq Composite plunging 2.8%. The S&P 500 had its worst day since March, falling 2.0% to finish at 4,352pts. The Dow Jones Industrial Average lost 1.6% meanwhile. European markets were also lower, with high-growth technology stocks on the continent also pressured by a surge in US government bond yields while investors also digested the inconclusive German election results. Germany’s DAX and France’s CAC 40 slumped 2.1% and 2.2% respectively. UK’s FTSE 100 slipped 0.5%. Asian markets were mixed earlier in the day in reaction to China’s 2021 GDP growth forecast being lowered from 8.2% to 7.7%-7.8% by various organizations. The Shanghai Composite Index and Hang Seng Index rose 0.5% and 1.2% regardless, though the Nikkei 225 closed 0.2% lower at 30,183pts.

Icon Offshore and Reservoir Link Energy announced the receipt of oil and gas-related contracts, reflective of recovering work flows. While Boustead Plantations has proposed to sell Kulai Young Estate in Johor for RM429m to YTL Power International’s 70%- owned subsidiary SIPP Power Sdn Bhd, NPC Resources is withdrawing its offer to sell its Sabah oil palm plantation to IOI Corporation as the company is unable to accept the latter’s revised purchase price for the assets.

 

Source: PublicInvest Research - 29 Sept 2021

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