US: Fed hikes interest rates, signals aggressive fight to curb inflation. The Fed raised interest rates for the first time since 2018 and laid out an aggressive plan to push borrowing costs to restrictive levels next year in a pivot from battling the coronavirus pandemic to countering the economic risks posed by excessive inflation and the war in Ukraine. The US central bank’s Federal Open Market Committee kicked off the move to tighten monetary policy with a quarter-percentage-point increase in the target federal funds rate, lifting that key benchmark from the current near-zero level in a step that will ripple through a variety of other rates charged to consumers and businesses. (Reuters)
US: Retail sales increase moderately in Feb . US retail sales rose moderately in Feb as more expensive gasoline and food forced households to cut back spending on other goods, which could restrain economic growth this quarter. Retail sales increased 0.3% last month, the Commerce Department said. Data for Jan was revised higher to show sales surging 4.9% instead of 3.8% as previously reported. Economists polled by Reuters had forecast retail sales slowing to 0.4%, with estimates ranging from as low as a 0.7% decline to as high as a 1.7% increase. (Reuters)
US: Business inventories jump 1.1% in Jan, matching estimates . Business inventories in the US increased in line with economist estimates in the month of Jan, according to a report released by the Commerce Department. The report showed business inventories jumped by 1.1% in Jan after surging by an upwardly revised 2.4% in Dec. Economists had expected business inventories to shoot up by 1.1% compared to the 2.1% spike originally reported for the previous month. Retail inventories continued to lead the way higher, leaping by 2.0% in Jan after soaring by 4.7% in Dec. The report showed wholesale and manufacturing inventories also increased by 0.8% and 0.7%, respectively. (RTT)
US: Homebuilder confidence drops more than expected in March . The National Association of Home Builders released a report showing a bigger than expected decrease in US homebuilder confidence in the month of March. The report showed the NAHB/Wells Fargo Housing Market Index dropped to 79 in March from a downwardly revised 81 in February. Economists had expected the index to edge down to 81 from the 82 originally reported for the previous month. The NAHB noted the index dropped below 80 for the first time since last Sept as increasing development and construction costs have taken a toll on builder confidence even as buyer demand remains relatively solid. (RTT)
US: Import prices jump 1.4% in Feb amid continued surge in fuel prices. The Labor Department released a report showing import prices in the US increased by slightly less than expected in the month of Feb. The report showed import prices jumped by 1.4% in Feb after surging by a downwardly revised 1.9% in Jan. Fuel prices continued to lead the advance, soaring by 6.9% in Feb after skyrocketing by 7.7% in Jan. The report said higher prices for petroleum more than offset a decrease in natural gas prices. The report showed prices for non-fuel imports climbed by 0.8% in Feb after jumping by 1.3% in Jan, reflecting higher prices for non-fuel industrial supplies and material, foods, feeds, and beverages, capital goods, consumer goods, and automotive vehicles. (RTT)
EU: Italy inflation rises as estimated in Feb . Italy's consumer price inflation accelerated in Feb to the highest in nearly three decades, final data from the statistical office Istat showed. Driven by higher energy prices, consumer price inflation rose to 5.7% in Feb, as estimated, from 4.8% in Jan. This was the highest rate since 1996. Excluding energy and fresh food, core inflation rose to 1.7% from 1.5% in the previous month. Prices of goods climbed at a faster pace of 8.6% annually and that of services logged a steady growth of 1.8% in Feb. Energy prices grew 45.9% from the last year. (RTT)
Japan: Industrial production falls less than estimated . Japan's industrial production fell less than estimated in Jan, latest data from the Ministry of Economy, Trade and Industry said. Industrial production declined a seasonally adjusted 0.8% monthly in Jan. In the initial estimate, output fell 1.3%. Shipments declined 1.6% monthly in January. In the initial estimate, shipments fell 1.8%. Inventories decreased 1.4%, which was in contrast to the 1.8% growth in the initial estimate. The inventory ratio fell 0.4% in Dec. In the initial estimate, the inventory ratio declined 1.3%. On a yearly basis, industrial production fell 0.5% in Jan. According to the initial estimate, output decreased 0.9%. (RTT)
South Korea: Jobless rate falls in Feb . South Korea's unemployment rate declined in Feb, data from Statistics Korea showed. The jobless rate fell to a seasonally adjusted 2.7% in Feb from 3.6% in Jan. In the same month last year, the unemployment rate was 3.9%. On an unadjusted basis, the unemployment rate declined to 3.4% in Feb from 4.1% in the previous month. The number of unemployed decreased to 954,000 in Feb from 1.143 million in the preceding month. Compared to a year ago, the figure decreased by 399,000 persons. The number of employed persons increased by 1.037m YoY to 27.402m in Feb. (RTT)
Telco: Single network maintained for 5G, DNB majority stake to be sold. Up to a 70% stake in Digital Nasional (DNB), the government-owned entity to deploy the 5G network, will be offered to mobile network operators (MNOs) such as Maxis, Digi, Celcom and U Mobile. (StarBiz)
Comments: The Malaysian government announced its decision to go with the Single Wholesale Network (SWN) model with the option for Mobile Network Operators (MNOs) to buy 70% stake in Digital Nasional Bhd (DNB). The remaining 30% will be held by the government. We view this as a win-win situation to resolve the issues with 5G rollout in Malaysia. This is seen as a midpoint between the SWN and the Dual Wholesale Network (DWN) model which the MNOs were proposing. However, there may be issues involving such arrangement i.e. what’s the scope of involvement of each of the MNO and will any disagreement or differences in opinion result in potential delay in 5G rollout. All in all, we maintain our view that regardless which model the government chooses, monetizing 5G services would be a challenge in the initial years for the telco players due to slow adoption rate and the lack of required eco-system (for further details, please refer to our recent note dated 15 March – Single or dual 5G network for Malaysia) .
AirAsia X (Outperform, TP: RM1.30): Announces final completion of its debt restructuring. AirAsia X (AAX) has lodged the sanction order for its debt restructuring with the Registrar of Companies, with the formalities of the restructuring now completed. The debt restructuring proposal was approved by its creditors on Nov 12, 2021, and by the High Court of Malaya on Dec 16, 2021. (BTimes)
Sunway: Secures RM616.66m surety bond facility for residential development housing project in Singapore. Sunway announced that the company has secured a surety bond facility of SGD200m (approximately RM616.66m) in aggregate from Berkshire Hathaway Specialty Insurance Company in relation with a residential development housing project in Singapore. (The Edge)
Tan Chong Motor: Issues RM300m sukuk under RM1.5bn sukuk murabahah programme. Tan Chong Motor Holdings has completed the inaugural issuance of RM300m sukuk murabahah under its RM1.5bn sukuk murabahah programme. The series one sukuk murabahah is rated A+IS with a stable outlook by MARC Ratings Bhd. (The Edge)
Elsoft: To sell property in Penang for RM38m. Elsoft Research is selling a property in Barat Daya, Penang for RM38m, proceeds of which will be used for business expansion, a production facility, general working capital, and a special dividend. The group, via wholly-owned unit Siangtronics Technology SB, entered into an agreement with manufacturer of industrial equipment SRM Integration (Malaysia) SB for the sale of the two-storey factory-cum-office building. (The Edge)
JF Technology: Sets up RM40m test contacting centre of excellence in Kota Damansara. JF Technology has set up its Test Contacting Centre of Excellence in Kota Damansara, Selangor with an investment of RM40m in a bid to further expand its business and to capture immense opportunities in the semiconductor industry. (The Edge)
The FBM KLCI might open higher today as the US stock market rallied strongly on Wednesday afternoon after the Federal Reserve raised interest rates for the first time since 2018 and signalled a string of additional increases to come. The Fed lifted its main interest rate by a quarter of a percentage point to a target range of 0.25% to 0.5%. The move by the US central bank was widely expected, though one member of the bank’s committee argued for a larger half-point increase. Shares initially wavered on the announcement before rebounding sharply after Fed chair Jay Powell discussed the central bank’s actions in a press conference, saying he saw the US economy as being in strong shape and that the probability of a recession was “not particularly elevated”. The S&P 500 stock index closed 2.2% higher, building on Tuesday’s gains to record its biggest two-day increase since April 2020. The tech-heavy Nasdaq Composite index rose 3.8%, its biggest one day rise since November 2020. Europe’s regional Stoxx 600 share index rose 3.1%, Germany’s Xetra Dax added 3.8% while London’s FTSE 100 rose 1.6%.
Back home, Bursa Malaysia ended at its intraday high Wednesday as bargain hunting emerged after three days of losses. At the closing bell, the benchmark FBM KLCI was 0.89% or 13.91 points firmer at 1,571.32 from 1,557.41 at Tuesday’s close. Hong Kong’s Hang Seng share index closed 9.1% higher as markets across the Asia-Pacific region rallied. The CSI 300 index of mainland Chinese shares rose 4.3% and the Nikkei 225 in Tokyo added 1.6%. Chinese officials said they would “coordinate pandemic prevention and control and economic development, keep the economy operating within a reasonable range and keep the capital market running smoothly,” according to a report on Wednesday by Xinhua, China’s state news agency. This helped soothe some fears over an economic slowdown in China that would also sap growth globally.
Source: PublicInvest Research - 17 Mar 2022
Chart | Stock Name | Last | Change | Volume |
---|
2024-03-29
AAX2024-03-29
JFTECH2024-03-28
SUNWAY2024-03-27
JFTECH2024-03-27
JFTECH2024-03-27
SUNWAY2024-03-27
SUNWAY2024-03-27
SUNWAY2024-03-27
SUNWAY2024-03-27
SUNWAY2024-03-26
SUNWAY2024-03-26
SUNWAY2024-03-26
SUNWAY2024-03-26
SUNWAY2024-03-26
SUNWAY2024-03-26
TCHONG2024-03-25
SUNWAY2024-03-25
SUNWAY2024-03-25
SUNWAY2024-03-25
SUNWAY2024-03-25
SUNWAY2024-03-25
SUNWAY2024-03-23
SUNWAY2024-03-22
SUNWAY2024-03-22
SUNWAY2024-03-22
SUNWAY2024-03-22
SUNWAY2024-03-22
SUNWAYCreated by PublicInvest | Mar 21, 2024