Economy

US: Beige book says economy expanded moderately, inflation remains strong. With the Federal Reserve's next monetary policy meeting looming, the central bank released its Beige Book on April 20. US economic activity has expanded at a moderate pace since mid-Feb. Consumer spending accelerated among retail and non financial service firms, as Covid-19 cases tapered across the country. Manufacturing activity was also described as "solid overall," although labour market tightness and elevated input costs continued to pose challenges on firms' abilities to meet demand. The elevated input costs came as inflationary pressures remained strong, with firms continuing to swiftly pass rising costs on to customers. (RTT)

US: Existing home sales extend pullback in March. After reporting a sharp pullback in US existing home sales in the previous month, showing existing home sales saw further downside in the month of March. Existing home sales slumped by 2.7% to an annual rate of 5.77m in March after plunging by 8.6% to a downwardly revised rate of 5.93m in Feb. With the continued decrease, existing home sales continued to give back ground after reaching their highest rate in a year in Jan. (RTT)

EU: Industrial production grows in Feb. Eurozone industrial production rose more than expected in Feb after falling in the previous month. Industrial output rose 0.7% MoM in Feb, reversing a 0.7% decrease in Jan, which was revised from a no change reading. In Dec, output rose 1.5%. Production of durable consumer goods output grew 2.7% and that of non-durable goods rose 1.9%. Intermediate goods output increased 0.9%. Meanwhile, capital goods output and energy output declined by 0.1% and 1.1%, respectively. (RTT)

EU: Trade balance swings to deficit. The eurozone trade balance swung to deficit in Feb, as imports rose faster than exports. The trade registered a deficit of EUR7.6bn in Feb versus a surplus of EUR23.6bn in the same month last year. On a yearly basis, exports rose an unadjusted 17.0% in Feb and imports grew 38.8%. On a MoM basis, exports grew by a seasonally adjusted 0.8% and imports gained 1.5% in Feb. The trade deficit narrowed to EUR9.4bn from EUR7.7bn in Jan. The EU trade deficit narrowed to a seasonally adjusted EUR18.4bn in Feb from EUR15.7bn in Jan. (RTT)

Japan: Tertiary activity falls in Feb. Japan's tertiary activity declined for the third straight month in Feb. The tertiary activity index declined 1.3% MoM in Feb, following a 0.2% decrease in Jan. Among the individual components, living and amusement-related services, wholesale trade, retail trade, transport and postal activities, real estate, business-related services, and goods rental and leasing decreased in Feb. (RTT)

Taiwan: March export orders rise again, April may be much quieter. Taiwan’s export orders grew faster than expected in March, setting a new high for the month bolstered by sustained technology demand, but the government warned of much slower growth for April on the Ukraine war and supply bottlenecks. Taiwan’s export orders, a bellwether of global technology demand, rose 16.8% from a year earlier to TWD62.69bn last month. It marked the 25th straight month of expansion. (Reuters)

Markets

Bintai Kinden: Unit inks pipe and valve distribution deal with Dubai-based Gerab Group. Bintai Kinden Corp 's subsidiary Bintai Energy SB has been appointed the exclusive distributor for pipes and valves supplied by Gerab Group in Malaysia and Brunei. Bintai Kinden said Bintai Energy on April 20 entered into a distribution agreement with Gerab National Enterprises LLC for the distribution of pipes and valves for the oil and gas business supplied by the latter. (The Edge)

Kejuruteraan Asastera: Partners local firm to expand into telecoms infrastructure sector. Kejuruteraan Asastera (KAB) has teamed up with privately held MRH Empire SB to venture into the telecommunication infrastructure sector to grow its recurring income. KAB's wholly-owned KAB Telco SB (KABTEL) has entered into a term sheet with MRH to form a joint venture (JV) to undertake identified and prospective projects. Under the JV, KABTEL will hold a 60% stake in the JV company and MRH the remaining 40%. (The Edge)

Vizione Holdings: Bags RM654.0m construction contract from PERKESO . Vizione Holdings's (VHB) has bagged a RM654.0m contract by Pertubuhan Keselamatan Sosial (PERKESO). The contract was secured by Permata Rebana & Vizione Holdings JV SB (PRVH), VHB's JV company with Permata Rebana SB. The contract is for the planning, design, construction, equipping, testing, commissioning, and maintenance of PERKESO's National Robotics and Cybernetics Rehabilitation Center (Phase 1) in Bandar Meru Raya, Perak. The contract has a duration of 30 months, starting from 2 May 2022. (Business Times)

Signature International, Scanwolf: Collaborate to grow project, retail business segments . Signature International has announced a strategic collaboration with Scanwolf Corp in a bid to grow its project and retail business segments through partnerships with leading brands and corporations. The group said its wholly-owned subsidiary Signature Cabinet SB signed an agreement for exclusive distributorship with Scanwolf Marketing SB, a wholly-owned subsidiary of Scanwolf. (The Edge)

Sinmah Capital: Seeks to sell poultry business, focuses on property development . Sinmah Capital is selling its poultry business to F.C.H. Holdings SB for RM2.9m. Sinmah said this is in line with the group's objective of streamlining its businesses to focus on property development as its growth prospect, moving forward. The proposed disposal will also unlock the value and monetise Sinmah's investment in its wholly-owned subsidiary SM Broilers SB, with the proceeds earmarked for the development expenditure on the group's existing Taman Gambir Perdana mixed project in Johor, which it said may allow the group to carry out its project in a more efficient manner. (The Edge)

OCR, Magna Prima: Partners to develop RM1.5bn integrated e-commerce hub . OCR Group and Magna Prima are joining hands to develop an integrated e-commerce logistics hub with a planned GDV of RM1.5bn, which the partners plan to launch in phases from 2023. In a statement, OCR said the joint venture will be with Magna Prima's 70%-owned unit Magna Ecocity SB, which owns a 20-acre leasehold plot in Section 15, Shah Alam, Selangor. (The Edge)

Market Update

US benchmarks had differing fortunes overnight as investors reacted to a slew of corporate earnings. Procter & Gamble and IBM’s better-than-expected numbers helped drive the Dow Jones Industrial Average 0.7% higher while a further slump in the price of Netflix (-35.0%) dragged the Nasdaq Composite 1.2% lower. The S&P 500 was largely flat meanwhile. European markets were mostly higher as strong earnings reports here also helped lift sentiment. This is despite cuts to global growth numbers by both the International Monetary Fund and the World Bank, predominantly on revision to Europe’s numbers. Germany’s DAX and France’s CAC 40 jumped 1.5% and 1.4% higher. UK’s FTSE 100 rose 0.4%. Asian bourses were mixed on the day as China stumped market expectations by keeping its benchmark lending rate unchanged. The Shanghai Composite and Hang Seng indices fell 1.3% and 0.4% respectively. Japan’s Nikkei 225 gained 0.9% with the Bank of Japan saying it would offer to buy an unlimited amount of 10-year Japanese government bonds at 0.25%.

Source: PublicInvest Research - 21 Apr 2022