Economy

US: Weekly jobless claims fall. The number of Americans filing new claims for unemployment benefits fell slightly more than expected last week, indicating that the labor market recovery was gaining traction. Initial claims for state unemployment benefits decreased 17,000 to a seasonally adjusted 232,000 for the week ended 19 Feb. Economists polled by Reuters had forecast 235,000 applications for the latest week. Claims had risen in the week ending 12 Feb, which economists blamed on week-to-week volatility in the data and the delayed impact of winter storms early in the month. (Reuters)

US: GDP grows slightly more than previously estimated in 4Q. The US economy grew by slightly more than originally estimated in the 4Q of 2021. The report showed the increase in real GDP in 4Q was upwardly revised to 7.0% from the previously reported 6.9%. The upward revision matched economist estimates. The stronger than previously estimated growth primarily reflected upward revisions to non-residential fixed investment, state and local government spending, and residential fixed investment. (RTT)

EU: France consumer confidence weakens in Feb. French consumer confidence weakened slightly in Feb. The consumer confidence index unexpectedly dropped to 98 in Feb from 99 in the previous month. The score was forecast to rise to 100. The households' opinion balance regarding their past financial situation fell three points to -19, while that for future personal financial situation gained one point to -6. At 13, the index measuring future savings capacity decreased by one point after a five-point rebound in Jan. (RTT)

EU: Italy industrial turnover drops in Dec. Italy's industrial turnover dropped in Dec after rising in the previous month. Industrial turnover declined 2.1% MoM in Dec, after a 2.4% growth in Nov. Domestic turnover fell 3.1% monthly in Dec, after a 2.2% gain in Nov. Foreign turnover fell 0.2%, after a 2.8% rise. Turnover of energy declined 2.7% monthly in Dec and those of capital goods fell 3.5%. Turnover of consumption goods and intermediate goods decreased by 2.2% and 1.0%, respectively.. (RTT)

UK: British shoppers return to high streets in Feb. UK retailers returned to the high streets in Feb. Retail sales volumes were above seasonal norms in Feb with the balance rising to +16% from - 23% in Jan. For March, the balance is seen at -1%. Selling prices continued to grow at a rapid pace in the year to Feb. A net 75% of retailers expect selling prices to rise compared to +77% in the year to Nov. A net 11% said internet sales declined in the year to Feb compared to -2% in Jan. (RTT)

South Korea: BOK maintains key rate as expected. South Korea's central bank maintained its key interest rate after two backto-back rate hikes, amid rising geopolitical risks and surging coronavirus infections. The Monetary Policy Board of the BOK decided to leave its base rate unchanged at 1.25%, as expected. The bank had raised its key rate by 25 basis points each in Nov and Jan. The board will judge when to further adjust the degree of accommodation. (RTT)

Australia: Capital expenditure rises less than expected. Australia's private capital expenditure grew less than expected in 4Q but firms plan to raise their investment in 2022-23. Total capital expenditure grew 1.1% in 4Q, but slower than the economists' forecast of 2.6%. Investment in buildings and structures was up 2.2%, while equipment, plant and machinery investment fell 0.1%. (RTT)

Hong Kong: Export growth eases in Jan. Hong Kong's merchandise exports and imports increased at a softer pace in Jan and the trade balance swung to a surplus. Exports rose 18.4% YoY in Jan, after a 24.8% increase in Dec. Imports gained 9.6% annually in Jan, after a 19.3% increase in the previous month. The trade balance registered a surplus of HKD6.648bn in Jan versus a deficit of HKD25.288bn in the same month last year. In Dec, the deficit was HKD32.753bn. (RTT)

Markets

Advancecon: Bags RM19m sub-contract works from Petrofac. Earthworks and civil engineering specialist Advancecon Holdings has bagged sub-contract works worth RM18.7m from Petrofac Engineering Services (Malaysia) to undertake early civil works such as earthworks and other related works at the project site of Petroliam Nasional in the Bintulu Additional Gas Sales Facilities 2, Sarawak. The service agreement with Petrofac is for five months where ASSB will be notified of the mobilisation date for field execution. (The Edge)

Pentamaster: 4Q net profit falls nearly 11% to RM19.65m, pays two sen dividend. Pentamaster Corp’s net profit for 4QFY21 fell 10.95% to RM19.65m from RM22.07m a year ago, despite stronger revenue growth. The group’s quarterly revenue grew 11.13% to RM122.49m from RM110.22m a year ago. Earnings per share contracted to 2.76sen in 4QFY21 versus 3.1sen a year ago. (The Edge)

ViTrox: Annual profit jumps to record as 4Q earnings climb 44%. ViTrox Corp's net profit for 4QFY21 jumped 44.48% to RM46.12m from RM31.92m in 4QFY20, as the automated vision inspection developer continued to enjoy higher sales, coupled with the strengthening of the USD in the period. ViTrox reported a 16.24% increase in quarterly revenue to RM185.75m from RM159.79m, thanks to favourable sales demand from the Automated Board Inspection and the Machine Vision System segments. (The Edge)

DNeX: Records a net profit of RM43.83m in 2Q. Dagang Nexchange (DNeX) recorded a net profit of RM43.83m in 2Q ended 31 Dec 2021, on the back of a revenue of RM353.31m. For the six months, DNeX registered a net profit of RM337.39m against RM624.18m in revenue. On a QoQ basis, DNeX reported an operating profit of RM75.94m with an increase of RM42.63m compared to the immediate preceding quarter of RM33.31m. (BTimes)

Optimax Holdings: Record revenue of RM26.61m for 4Q. Private eye specialist Optimax Holdings posted a revenue of RM26.61m for the 4QFY21, an increase of 54.59% from the RM17.21m same quarter last year. The increase in revenue is also supported by the net profit that rose 78.19% to RM4.03m compared to RM2.26m for the same quarter last year. The company's central Peninsular Malaysia operations remain the largest revenue contributor to revenue, at RM15.99m or 60.08% of total revenue for Q4FY21. (BTimes)

Bintai Kinden: 3QFY22 net profit climbs 52%. Bintai Kinden Corp’s net profit jumped 57.2% to RM1.41m in 3QFY22, from RM898,000 a year earlier on continued improvements in its mechanical and electrical engineering (M&E) segment. Its revenue in 3QFY22 stood at RM28.93m, up 92.4% from RM15.04m posted a year ago. (StarBiz)

Petron Malaysia: Returns to the black in FY21 with net profit of RM238m. Petron Malaysia Refining & Marketing (Petron) returned to the black in FY2021 with a net profit of RM238.47m, compared with a net loss of RM13.3m in the previous year. The company’s revenue surged to RM9.2bn from RM6.5bn previously. (StarBiz)

MARKET UPDATE

The FBM KLCI might end the weeks higher as stocks on Wall Street shifted violently on Thursday, with the Nasdaq Composite registering its biggest intraday swing since the throes of the pandemic in March 2020, after Russian president Vladimir Putin launched a military invasion of Ukraine. The benchmark S&P 500 stock index closed 1.5% higher, rebounding from a loss of as much as 2.6%, in a sign that hedge funds were getting out of many popular positions and unwinding bets that stocks would fall. The technology-heavy Nasdaq Composite index rallied 3.3% by the closing bell, reversing a 3.4% loss earlier in the day. The rebound in the US stood in contrast to a stinging sell-off in European and Russian stocks, as well as a shift into low-risk government debt, following Russia’s invasion in the early hours of Thursday morning. The regional Stoxx 600 share index closed down 3.3%, in a technical correction — defined as a 10% decline from a recent peak — with heavy falls across bourses in Germany, France, Italy and the UK. The escalation of the conflict in Ukraine is dominating the global market narrative because of the potential for Russia’s energy and resources being cut out of global supply chains, exacerbating already high inflation and prompting central banks to respond with rapid interest rate rises.

Back home, Bursa Malaysia ended broadly lower on Thursday, with the key index falling by 0.77% due to profit-taking activities led by banking stocks, coupled with heightened concerns over the geopolitical risk between Russia and Ukraine. At 5pm, the benchmark FBM KLCI shed 12.25 points to 1,573.89 from 1,586.14 at Wednesday’s close, after opening 0.58 of-a-point weaker at 1,585.56. Hong Kong’s Hang Seng Index dropped over 3%. Japan’s Nikkei Stock Average closed down 1.8% to its lowest level since November 2020.

Source: PublicInvest Research - 25 Feb 2022