US: Home sales climb to nine-month high; housing shortage persists . US home sales unexpectedly rose in Oct, reaching their highest level in nine months, though higher prices amid tight supply continued to sideline first-time buyers from the market. The report from the National Association of Realtors also showed an increase in the share of investors buying homes last month, likely reflecting growing demand for rental accommodation as the economy reverts to normal, thanks to vaccinations against COVID-19. "Home sales remain resilient given the extremely tight supply of homes for sale," said Shannon Brobst, an economist at Moody's Analytics in West Chester, Pennsylvania. "Potential home buyers will continue to find it challenging to find a home that meets their budget." Existing home sales rose 0.8% to a seasonally adjusted annual rate of 6.34m units last month. (Reuters)
US: Biden picks Jerome Powell to lead the Fed for a second term as the US battles Covid and inflation . Jerome Powell, who guided the Fed and the nation’s economy through the staggering and sudden Covid-19 recession by implementing unprecedented monetary stimulus, is being nominated for a second term as chairman of the US central bank. President Joe Biden made the announcement following weeks of speculation that a push from progressives might see Fed Governor Lael Brainard get the spot. Acknowledging the political pressure he faced to nominate a more progressive Democrat than the Republican Powell, Biden said he settled on Powell because the current economic circumstances present “enormous potential and enormous uncertainty” and require “stability and independence.” (CNBC)
EU: Eurozone consumer confidence lowest in 7 months . Euro area consumer confidence deteriorated for a second straight month and at a faster than expected pace in Nov to its lowest level in seven months, preliminary data from the European Commission. The flash Eurozone consumer confidence index fell to -6.8 from -4.8 in Oct. Economists had forecast a score of -5.5. The latest reading was the weakest since -8.1 in April. The corresponding indicator for the EU shed 2.1 point to reach -8.2 in Nov, which was also the lowest in seven months. Data for the latest survey was collected from Nov 1 to 21. The final figures for consumer confidence is set be released along with the full monthly business and consumer survey result on Nov 29. (RTT)
Australia: Manufacturing sector accelerates in Nov – Markit . The manufacturing sector in Australia continued to expand in Nov, and at a faster pace, the latest survey from Markit Economics showed with a manufacturing PMI score of 58.5. That's up from 58.2 in Oct and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Growth of manufacturing output and new orders accelerated in Nov amid reports of a further reopening of the Australian economy while market confidence improved alongside better COVID-19 conditions. As a result, employment levels and buying activity continued to expand. (RTT)
Hong Kong: Inflation accelerates in Oct . Hong Kong's consumer price inflation accelerated to a three-month high in Oct, data released by the Census and Statistics Department showed. Consumer prices advanced 1.7% YoY in Oct, bigger than the 1.4% increase in Sept. Netting out the effects of all government's one-off relief measures, underlying inflation rose marginally to 1.1% from 1% in Sept. The increase in underlying inflation was driven by the enlarged increases in electricity charges as well as the prices of fresh vegetables. Looking ahead, inflation pressure may go up somewhat in the near term alongside the faster increase in import prices and the economic recovery, a government spokesman said. (RTT)
South Korea: Consumer confidence index improves to 107.6 – BoK . Consumer confidence in South Korea picked up steam in Nov, the latest survey from the Bank of Korea showed with a sentiment index score of 107.6 - up from 106.8 in Oct. Consumer sentiment regarding current living standards was unchanged at 92, while the outlook was one point lower than in the previous month at 97. Consumer sentiment related to future household income was unchanged at 101, and the outlook was three points higher at 115. (RTT)
Taiwan: Jobless rate falls in Oct . Taiwan's jobless rate dropped in Oct, the Department of Census, Directorate General of Budget Accounting & Statistics, or DGBAS, said. The unemployment rate fell by seasonally adjusted 0.08%age points to 3.84% in Oct. On an unadjusted basis, the jobless rate declined by 0.13%age points to 3.83%. The number of unemployed persons was 456,000 in Oct, down by 15,000 or -3.19% from the previous month. However, unemployment increased by 1,000 from the last year. The labor force participation rate rose by 0.09%age points to 59.02% in Oct. At the same time, total employment grew by 28,000 to 11.44m. However, it decreased by 65,000 from the previous year. (RTT)
IHH Healthcare (Outperform, TP: RM6.80): Weighing USD1bn sale of China hospitals. IHH Healthcare is considering the potential sale of its China unit, in a deal that could value the chain at as much as USD1bn, according to people familiar with the situation. (The Edge)
Comment: It was reported that IHH Healthcare is considering the potential sales of its China that could value as much as USD1bn (c. RM4.1bn). Based on our estimates, China unit only contribute less than 5% of Group’s topline, we believe this would have minimal earnings impact on the Group. We are neutral on the move as we believe this would help raise extra cash for debt repayment (we estimate net gearing would reduce from 22% to 4%) while IHH would also lose the exposure to China market. However, as the deal is currently just under discussion process that may not lead translate to actual transaction, our forecasts remain unchanged.
Amprop: Completes privatisation, to be delisted on Nov 25. Amcorp Properties (Amprop) will be delisted on 25 Nov, following the completion of its privatisation via selective capital reduction (SCR). The payment of the SCR of 90sen per share to entitled shareholders was completed. (The Edge)
Pestech: Secures Philippine electric substation upgrading contract. Pestech International has bagged a contract from the National Grid Corporation of the Philippines (NGCP) for the South Luzon Substations Upgrading Project 2. The construction engineering company said the total contract value was USD23.46m (USD1= RM4.19) for the offshore portion and PHP710.76m for the onshore portion (PHP1 = RM0.083). (StarBiz)
Maybulk: Back in the black in 3Q on higher charter rates, lower operating expenses. Malaysian Bulk Carriers (Maybulk) reported a net profit of RM113.58m for the 3Q ended 30 Sept 2021, compared with a net loss of RM5.95m a year prior, on higher charter rates, and lower operating expenses from a smaller fleet size and vessel disposal. (The Edge)
PetGas: Posts RM580.84m net profit in 3Q. Petronas Gas (PetGas) recorded a net profit of RM580.84l in the 3Q ended 30 Sept 2021, down by 1.7% from RM591.01m in the previous corresponding period, due to the impact of unfavourable foreign exchange movement. (StarBiz)
Revenue Group: 1Q net profit up 64% amid increase in payment processing volume. Electronic payment processor Revenue Group booked a 64.11% increase in net profit at RM3.46m for its 1Q ended 30 Sept 2021, from RM2.11m last quarter due to a higher revenue from the rental and maintenance of its electronic draft capture (EDC) terminals and the income from electronic transaction processing due to wider adoption of e commerce transactions. (The Edge)
Keck Seng: 3Q profit up on better palm oil refining margins, improved hotel occupancy. Palm oil producer Keck Seng (Malaysia) net profit rose 327% to RM17.56m for the 3QFY21, compared with RM3.84m in the immediate preceding quarter, on better refining margins. The group also attributed the higher earnings to lower losses in its hotel division from improved occupancy rates. (The Edge)
The FBM KLCI might open lower today after Wall Street stocks dropped on Monday as traders reacted to the news that Joe Biden had nominated Jay Powell as chair of the Federal Reserve for a second term, with Lael Brainard selected as nominee for vice chair. The US’s blue-chip S&P 500 equity index gave up earlier gains when Powell’s re-nomination was first announced, ending the day 0.3% lower in the New York. The technology-heavy Nasdaq Composite index also tailed late in the trading day, closing 1.3% lower. Tech stocks are considered particularly sensitive to rising interest rates, with Powell’s re-nomination expected to result in a more hawkish tilt to the US central bank’s policy than had Brainard been chosen as candidate for Fed chair. Equity markets were subdued across the Atlantic. European stocks had edged up during their afternoon session but later fell. Several countries in the bloc were last week forced to re-impose pandemic restrictions. Europe’s Stoxx 600 share index closed 0.1% lower on Monday, having fallen 0.3% during the previous trading day. London’s FTSE 100 share index closed 0.4% higher.
Back home, Bursa Malaysia ended mixed on Monday, with the benchmark index barely moving due to a lack of catalysts. At 5pm, the benchmark FBM KLCI inched up 1.33 points, or 0.09%, to finish at 1,526.87. Elsewhere, Asian stock markets were mixed. Hong Kong’s Hang Seng index fell 0.4% while China’s CSI 300 index rose 0.5%.
Source: PublicInvest Research - 23 Nov 2021
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PETGASCreated by PublicInvest | Mar 21, 2024