US: Fed to wait until 2023 to raise rates, but there is risk of earlier hike . The Federal Reserve will wait until 2023 before raising interest rates, according to a majority of economists in a Reuters poll who nonetheless said the greater risk for the US economy was persistently higher inflation over the coming year. While half the members of the US central bank's policy-setting committee projected last month that the Fed would raise its benchmark overnight lending rate - federal funds rate - next year, most economists surveyed were more cautious. The poll was conducted Oct. 12-18. "We continue to expect the Fed to remain patient. (Reuters)
EU: Eurozone inflation accelerates as estimated in Sept . Eurozone inflation rose as initially estimated in Sept, final data from Eurostat revealed. Inflation advanced to 3.4% in Sept from 3.0% in Aug. In the same period last year, prices were down 0.3%. The rate matched the preliminary estimate published on Oct 1. This was the highest rate since Sept 2008. Core inflation that excludes energy, food, alcohol and tobacco, increased to 1.9%, as initially estimated, from 1.6% in the previous month. On a monthly basis, the harmonized index of consumer prices gained 0.5%, in line with flash estimate. The annual inflation was largely driven by the sharp 17.6% increase in energy prices. (RTT)
EU: Eurozone current account surplus declines in Aug . The euro area current account surplus declined sharply in Aug, the ECB said. The current account surplus fell to EUR13bn in Aug from EUR23bn in July. The surplus on goods trade came in at EUR17bn versus EUR26bn a month ago. At the same time, the balance on services trade showed a deficit of EUR1bn compared to a surplus of EUR7bn in the previous month. (RTT)
UK: Inflation slows unexpectedly . UK consumer price inflation slowed unexpectedly in Sept largely due to strong base effects, the Office for National Statistics said. Consumer price inflation slowed slightly to 3.1% from 3.2% in Aug. Economists had forecast the rate to remain unchanged at 3.2%. On a monthly basis, the consumer price index gained 0.3%, following Aug's 0.7% increase. Prices were forecast to grow 0.4%. Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to 2.9% from 3.1% in the previous month. Restaurants and hotels made large downward contribution to the consumer price inflation, data showed. (RTT)
China: New home prices stall for first time since COVID-19 . China’s new home prices stalled for the first time since Feb 2020 in Sept, as the chill in the property market intensified amid tightening credit due to an ongoing crackdown on speculative investment. The average new home price in 70 major Chinese cities was unchanged in Sept MoM, compared with 0.2% growth in Aug, according to Reuters calculations based on data released by the National Bureau of Statistics (NBS). Some analysts said prices fell 0.08%, or even 0.1%, based on their respective calculations, which can vary slightly due to different formulas used. The NBS did not respond to a Reuters request for comment. The data showed 27 cities reported MoM gains, compared with 46 in Aug, the lowest since Feb 2020 at the height of China’s COVID-19 outbreak. (Reuters)
China: Leaves loan prime rate unchanged. China maintained its benchmark loan prime rates for the 18th consecutive month, as widely expected. The one-year loan prime rate was kept unchanged at 3.85% and the five-year LPR at 4.65%. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April 2020. Markets expected LPR rates to remain on hold as the People's Bank of China had kept the rate on its medium-term lending facility unchanged early this month. The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. (RTT)
Japan: Export growth slows; import costs weigh on recovery hopes . Japan’s export growth weakened to its slowest in seven months in Sept, while a surge in imports added to worries that pandemic-led global supply chain snags could derail the country’s fragile economic recovery. Exports are losing steam at a time when a weaker yen and a spike in oil prices have pushed up import costs, hurting resource-poor Japan’s terms of trade and potentially undermining Prime Minister Fumio Kishida’s pledge to correct wealth gaps. The trade data will be among factors the Bank of Japan will scrutinise when it releases fresh quarterly growth and inflation projections at its policy meeting later this month. Exports rose 13.0% in Sept from a year earlier, (Reuters)
Taiwan: Sept export orders beat forecast as China curbs loom. Taiwan's export orders set a record in Sept, growing faster than expected on demand for new smartphones and chips and ahead of the year-end holiday shopping season, and the government said the outlook was good, though uncertainty over China's economy cast a shadow. Taiwan's export orders, a bellwether of global technology demand, rose 25.7% from a year earlier to USD62.9bn in Sept, a historic high, data from the Ministry of Economic Affairs showed. That was the 19th month of expansion, and the pace was much faster than the median forecast of a rise of 17% in a Reuters poll. The ministry said new smartphone launches and demand for new technologies helped sustain export orders, as well as stockpiling for Christmas and New Year holidays. (Reuters)
TNB (Outperform, TP: RM12.42): Buys 49% of wind farm firm Blyth Offshore from France's EDF. Tenaga Nasional Bhd (TNB) is acquiring a 49% stake in an offshore wind farm company Blyth Offshore Demonstrator Ltd (BODL) for an undisclosed amount. TNB had signed a SPA for the acquisition with EDF Renewables, which is a unit of French utility company Électricité de France (EDF). (BTimes)
Comments: The acquisition of a 49% stake in Blyth Offshore Demonstrator Ltd. from EDF Renewables, the renewable energy arm of French state utility Électricité de France marks TNB’s entry in UK offshore wind market. This move is in line with Tenaga’s commitment to ESG drive, aiming to grow RE to 8,300MW by 2025. Details are light at this juncture with no disclosure on purchase price and projected earnings but existing 41.5MW of installed capacity was operational since 2017 and it has rights to built another 58.4MW of capacity. All told, no change to our earnings estimates and Outperform call, with DCF-derived TP also unchanged at RM12.42.
Ageson: Aborts rights issue of ICULS. Ageson (formerly known as Prinsiptek Corp) has decided to scrap its proposed rights issue of irredeemable convertible unsecured loan stocks (ICULS). This is due to the "expected longer time" required for the company to complete the rights issue. Ageson said it will explore an alternative avenue to raise funds expeditiously for its operational requirements. (The Edge)
Pestech: Signs MoU with UK-Sweden operating firm to develop Waste-2-Energy solutions in ASEAN region. Pestech International has entered into a MoU with Gartena Holdings Ltd to explore the opportunity to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region. Both parties wish to cooperate in proposing and developing Waste-2-Energy solutions in the ASEAN region under the MoU. (The Edge)
Bintai Kinden: Appointed distributor of Scientillence's hemodialyzer. Bintai Kinden Corporation has been appointed as a non-exclusive distributor for hemodialyser manufactured by Scientillence SB in Malaysia. Scientillence is the sole manufacturer of dialyser (artificial kidney) in Malaysia as well as Southeast Asia. (The Edge)
Mah Sing: Concludes RM300m sukuk issuance. Mah Sing Group announced it has completed the issuance of secured and unrated Sukuk Murabahah of RM300m. The sukuk issuance is part of the property developer's ongoing RM1bn Sukuk Murabahah programme since last year when it announced plans to diversify into glove production. (The Edge)
SKB Shutters: Announces 2-for-1 bonus issue, free warrants. SKB Shutters Corp has proposed to undertake a bonus issue of two new shares for every one share held. The roller shutter and steel door manufacturer also announced free warrants on the basis of one warrant for every two shares held. The entitlement dates for the two issues will be determined later. (The Edge)
The FBM KLCI might open with a positive bias today after Wall Street and European equities ticked higher on Wednesday as investors considered mixed reports on how large businesses were managing inflationary pressures. The S&P 500 rose 0.4%, notching its sixth straight day of gains and marking its longest run of consecutive daily increases since the end of June. The blue-chip index traded just below its all-time closing high of early September, despite a choppy few weeks of trading before earnings season started. The technology-focused Nasdaq Composite gyrated, ending the day slightly lower after giving up early morning gains. In Europe, the regional Stoxx 600 index closed up 0.3%, taking its gain in October so far to above 3%, thanks to optimism about the quarterly earnings season. The moves came after the consumer goods group Nestlé lifted its full-year earnings guidance as it raised product prices to counteract increasing input costs. The consumer goods bellwether Procter & Gamble on Tuesday also said it would lift prices and maintained its full-year earnings outlook. The Dutch paintmaker Akzo Nobel reported weaker-than expected quarterly results on Wednesday, however, citing raw material price inflation and supply chain disruptions.
Back home, the FBM KLCI continued trending upwards to close above its previous month's high of 1,604.95, buoyed by elevated crude oil and FCPO prices as well as continued buying interest in constituents such as Top Glove Corp Bhd, CIMB Group Holdings Bhd, and Public Bank Bhd. At 5pm, the benchmark index gained 0.35 point or 0.02% to close at 1,606.32, after opening higher at 1,611.83 before dipping to an intraday low of 1,601.31. In the region, Hong Kong’s Hang Seng index rose 1.4% while Tokyo’s Topix ended the day roughly where it started.
Source: PublicInvest Research - 21 Oct 2021
Chart | Stock Name | Last | Change | Volume |
---|
2024-03-28
MAHSING2024-03-28
TENAGA2024-03-27
MAHSING2024-03-27
TENAGA2024-03-27
TENAGA2024-03-26
AGES2024-03-26
PESTECH2024-03-26
PESTECH2024-03-26
TENAGA2024-03-26
TENAGA2024-03-25
TENAGA2024-03-25
TENAGA2024-03-23
MAHSING2024-03-22
AGES2024-03-22
MAHSING2024-03-22
TENAGA2024-03-22
TENAGACreated by PublicInvest | Mar 21, 2024