Economy

US: Manufacturing sector picks up in Nov - ISM. US manufacturing activity picked up in Nov amid strong demand for goods, keeping inflation high as factories continued to struggle with pandemic-related shortages of raw materials. The Institute for Supply Management (ISM) said its index of national factory activity increased to a reading of 61.1 last month from 60.8 in Oct. (Reuters)

US: Construction spending shows modest increase in Oct. The Commerce Department released a report showing a modest increase in construction spending in the month of Oct. The construction spending inched up by 0.2% to an annual rate of USD1.598trn in Oct after edging down by 0.1% to a revised rate of USD1.595trn in Sept. (RTT)

EU: Factory growth almost stabilized in Nov. The euro area manufacturing sector growth nearly stabilized in Nov, following a four-month slowdown from June's record expansion, final survey results from IHS Markit showed. The factory Purchasing Managers' Index rose slightly to 58.4 in Nov from 58.3 in the previous month. The flash reading was 58.6. (RTT)

EU: Germany retail sales fall at slower pace in Oct. Germany retail sales declined at a slower pace in Oct, data from Destatis revealed. Retail sales dropped 0.3% on a monthly basis, but slower than the 1.9% decline posted in Sept. This was the second consecutive decrease and confounded the expected growth of 1%. (RTT)

UK: Manufacturing sector growth improves in Nov. The UK manufacturing sector grew at a faster pace in Nov despite stretched supply chains disrupting production schedule, final survey results from IHS Markit showed. The Chartered Institute of Procurement & Supply manufacturing Purchasing Managers' Index rose to a three month high of 58.1 in Nov from 57.8 in Oct. (RTT)

UK: House price inflation accelerates unexpectedly. UK house prices rose at a faster pace in Nov, defying expectations for an easing, survey results from the Nationwide Building Society showed. The house price index rose 10.0% YoY following a 9.9% increase in Oct. Economists had forecast a 9.3% climb. Compared to the previous month, house prices rose 0.9% in Nov after a 0.7% climb in Oct. Economists had predicted a slower growth of 0.5%. The monthly increase was the fastest in three months. (RTT)

China: Nov factory activity slips back into contraction - Caixin PMI. China’s factory activity fell back into contraction in Nov as subdued demand, shrinking employment and elevated prices weighed on manufacturers, a business survey showed. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 49.9 in Nov from 50.6 the month before, versus analyst expectations of 50.5. (Reuters)

China: Property woes worsen as home prices slip in Nov - survey. China’s property market woes worsened in Nov, with prices for both new and resale homes falling amid weaker demand in bigger cities, a private-sector survey showed. The property sector has slowed sharply in recent months, with sentiment shaken by tight regulations and a growing liquidity crisis that has engulfed some of the country’s most indebted developers. (Reuters)

India: Manufacturing sector growth gains momentum. India's manufacturing sector growth strengthened in Nov driven by the fastest upturn in production in nine months, survey results from IHS Markit showed. The manufacturing Purchasing Managers' Index rose to 57.6 in Nov from 55.9 in the previous month. (RTT)

South Korea: GDP rises 0.3% on quarter in 3Q. South Korea's GDP was up a seasonally adjusted 0.3% on quarter in the 3Q of 2021, the Bank of Korea said. That was in line with expectations and down from the 0.8% growth in the previous three months. On an annualized yearly basis, GDP jumped 4%, again roughly matching estimates and slowing from 6.0% in the 2Q. (RTT)

South Korea: Exports jump at fastest pace in 3 months but Omicron worrisome. South Korean exports grew at their fastest pace in three months in Nov thanks to post-pandemic recoveries in major trading partners that pushed up demand for chips and petrochemicals, but the Omicron variant may pose risk to the export-reliant economy. (Reuters)

Markets

Pharmaniaga: To set up halal insulin manufacturing plant . Pharmaniaga will embark on setting up a halal insulin manufacturing plant at its high-technology plant in Pharmaniaga Lifesciences Puchong, according to the group’s MD Datuk Zulkarnain Md Eusope. (The Edge)

TH Heavy: Faces delisting after Bursa rejects request for more time to submit regularisation plan . Trading in TH Heavy Engineering (THHE) securities will be suspended on Dec 9, as its appeal for an additional six months up to April 22 next year to submit its regularisation plan to the regulatory authorities has been rejected by Bursa Securities. Bursa Securities added that trading in the securities of the PN17 company will be suspended from Dec 9 onwards, and the company will be delisted on Dec 13, unless it submits an appeal by Dec 8. (The Edge)

Samaiden: Inks maiden 20-year solar PPA with Sunway Nexis . Samaiden Group has inked a 20-year solar power purchase agreement with Perbadanan Pengurusan Sunway Nexis, under which the latter will purchase electricity generated from a rooftop solar photovoltaic (PV) power system that will be developed by Samaiden. The rooftop solar PV power system will be a 531- kilowatt-peak grid-connected system that will be built at Sunway Nexis' premises in Kota Damansara. (The Edge)

Pekat: Unit set to partner with Allianz to provide insurance coverage for solar PV system . Pekat Group’s (Pekat) unit Solaroo Systems SB plans to collaborate with Allianz General Insurance Company (Malaysia) (Allianz General) to provide all of the company’s residential solar photovoltaic (PV) systems with a five-year “SolarPro” insurance coverage. (Bernama)

Sand Nisko Capital: Signs JVA for two phases of land development in Melaka . Sand Nisko Capital has entered into a JVA with Mutiara Mahajuta SB for dual phases development of approximately 65.56 hectares (162 acres) of land in Alor Gajah, Melaka. SNC said the first phase of development entails agriculture development, while the second phase will be for a mixed development of residential, commercial and/or industrial buildings. (Bernama)

EA Holdings: Inks MoU with Third Telecom for new 5G venture . EA Holdings (EAH) signed a non-binding MoU with Third Telecom SB (TTSB) to collaborate for the design, provision and distribution of broadband access connectivity solutions, services and equipment utilising the newly launched 5G technology in Malaysia. (Business Times)

RGT: Buys 70% stake in precision metal supplier . RGT is buying a 70% stake in Keenness Precision Engineering SB (KPESB) for RM9.8m, in a move to further venture into electronic manufacturing service. RGT is buying the stake from KPESB’s directors Ooi Swang Kieat and Tan Eng Thuan. (The Edge)

TCS: Bags RM126m contract to build condo in related party transaction . TCS Group Holdings has won a RM126m contract from Saujana Permai Development SB to build a condominium project in Bandar Saujana Putra. The project known as Arcadia comprises two 21-storey blocks, with 315 units each, together with retail lots. (The Edge)

Market Update

The FBM KLCI might open lower today after US equities and oil prices slid on Wednesday as concerns about the Omicron coronavirus variant and hawkish comments from the Federal Reserve chair weighed on global financial markets. Wall Street’s S&P 500 equity gauge closed 1.2% lower in New York, erasing a gain of 1.9% earlier in the session. The decline marked the benchmark’s largest intraday swing since March and followed a punishing session on Tuesday, which left the index almost 2% lower. The technology-focused Nasdaq slipped 1.8%, with losses accelerating just before the close. The knock to stocks came on news that the first Omicron variant had been identified in a vaccinated person in California, as well as figures that showed another surge of coronavirus cases in South Africa. On top of Omicron fears, investors continued to weigh comments from Jay Powell, Fed chair, who this week told Congress that the risk of higher inflation had increased. The Stoxx 600 index ended the European session up 1.7%, marking its strongest closing performance in almost seven months, with broad-based gains on Wednesday led by tech companies, oil producers and banks among other sectors.

Back home, Bursa Malaysia succumbed to heavy selling pressure on Wednesday with the benchmark index falling below the 1,500 psychological level amid fears that the Omicron variant could possibly halt global economic recovery. At 5pm, the benchmark FBM KLCI fell 1.13% or 17.05 points to end at 1,496.93 from 1,513.98 at Tuesday’s closing. In regional markets, Hong Kong’s Hang Seng rose 0.8% while Japan’s Topix index climbed 0.4%.

Source: PublicInvest Research - 2 Dec 2021