Economy

US: Consumer sentiment rebounds slightly more than initially estimated. The University of Michigan released revised data showing consumer sentiment in the US rebounded by slightly more than initially estimated in the month of July. The report showed the consumer sentiment index for July was upwardly revised to 51.5 from the preliminary reading of 51.1. Economists had expected the index to be unrevised. With the upward revision, the consumer sentiment index recovered a little further from a record low of 50.0 in June. (RTT)

US: Personal income climbs 0.6% in June, slightly more than expected. A report released by the Commerce Department showed personal income in the US increased by slightly more than expected in the month of June. The Commerce Department said personal income climbed by 0.6% in June following an upwardly revised 0.6% advance in May. Economists had expected personal income to rise by 0.5%, matching the increase originally reported for the previous month. Disposable personal income, or personal income less personal current taxes, increased by 0.7% in June after climbing by 0.6% in May. (RTT)

EU: Italy inflation eases unexpectedly; PPI rises sharply. Italy's consumer price inflation eased unexpectedly in July, though marginally, preliminary data from the statistical office showed. Producer prices continued to rise sharply in June, but the pace of expansion has slowed since May, separate official data revealed. Consumer price inflation slowed to 7.9% in July from 8.0% in June. Economists had forecast inflation to rise slightly to 8.1%. Prices for energy alone grew 42.9% annually in July and those for processed food goods rose 9.6%. Excluding energy and fresh food, core inflation accelerated to 4.1% from 3.8%. On a monthly basis, consumer prices moved up 0.4% in July versus an expected increase of 0.6%. (RTT)

China: Factory activity contracts unexpectedly in July as Covid flares up. China's factory activity contracted unexpectedly in July after bouncing back from Covid-19 lockdowns the month before, as fresh virus flare-ups and a darkening global outlook weighed on demand, a survey showed. The official manufacturing purchasing managers' Index (PMI) fell to 49.0 in July from 50.2 in June, the National Bureau of Statistics (NBS) said, below the 50-point mark that separates contraction from growth and the lowest in three months. Analysts polled by Reuters had expected a reading of 50.4. "The level of economic prosperity in China has fallen, the foundation for recovery still needs consolidation," NBS senior statistician Zhao Qinghe said in a statement on the NBS website. (Reuters)

Japan: Housing starts fall further; consumer confidence at 18- month low. Japan's housing starts decreased for the second straight month in June, while consumer confidence weakened to the lowest level in one-and-a-half years in July, official data showed. Housing starts dropped 2.2% YoY in June, slower than the 4.3% fall in May, data from the Ministry of Land, Infrastructure, Transport and Tourism revealed. Economists had forecast an annual decline of 1.2%. However, seasonally adjusted annualized housing starts rose to 845,000 in June from 828,000 in the previous month. Data also showed that construction orders received by big 50 contractors grew 15.5% year-on-year in June, following a 19.5% rise in May. The seasonally adjusted consumer confidence index fell to 30.2 in July from 32.1 in June, data from the Cabinet Office revealed. 29.8. (RTT)

Australia: Manufacturing PMI slips to 55.7 in July - S&P Global. The manufacturing sector in Australia continued to expand in July, albeit at a slower pace, the latest survey from S&P Global revealed with a manufacturing PMI score of 55.7. That's down from 56.2 in June, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. July data pointed to a sixth month of expansion in production across Australia's manufacturing sector. Survey respondents attributed growth to strong overall demand as well as additional shifts being worked. That said, the rate of expansion was unchanged from June. (RTT)

Taiwan: 2Q GDP grows at slowest in two years on China lockdowns, Covid-19. Taiwan's economy grew at its slowest pace in two years in the 2Q and performed slightly worse than expected, hit by supply chain woes and a surge in domestic Covid cases, with the outlook for exports clouded by signs of a global slowdown. For the April-June period, annual GDP grew by 3.08% from the same period a year earlier, compared with 3.14% for the previous quarter, preliminary data from the statistics agency showed. That was below an increase of 3.1% forecast in a Reuters poll, and the slowest pace since eking out 0.63% growth in the 2Q of 2020 when the pandemic began to race around the world. (Reuters)

Markets

Aemulus: Secures new orders worth RM37.9m. Aemulus has secured new orders worth approximately RM37.9m from its existing Malaysia-based customer from the automotive industry. Its unit Aemulus Corporation SB (ACSB) had bagged the orders for the automotive test systems. The revenue from the said new orders shall be recognised progressively upon delivery of the systems. The orders are expected to be fulfilled from Aug 2022 until June 2026. (The Edge)

MyNews: Warns tobacco Bill will hit revenues. MyNews said revenues for over 500 of its outlets will be affected if the Control of Tobacco Product and Smoking Bill 2022 is approved. The Bill will make it illegal for people born in 2007 and onwards to smoke, buy or possess any type of tobacco product like vape. It has appealed to all members of Parliament to re-evaluate their decision to approve the Bill, which was tabled in the Dewan Rakyat for its first reading on July 26. (The Edge)

TDM: Exits Indonesia operations via stake disposals for RM115m. TDM has disposed of its entire stake in two Indonesian plantation firms for a total of RM115m, a move aimed at exiting Indonesia and focusing its resources on its Malaysian operations. One of the firms, PT Rafi Kamajaya Abadi, has been loss making since its incorporation up till Dec 31, 2020 while the other, PT Sawit Rezki Abadi, has also been loss making since its incorporation. (The Edge)

Ingenier Gudang: Acquires 149 commercial units for RM9.07m. Ingenieur Gudang's wholly-owned subsidiary MGudang Properties SB (MPSB) has proposed to acquire 149 units of the retail and commercial properties from Paradise Boulevard Sdn Bhd for RM9.07m. The leasehold property known as Pandan Safari Lagoon Shopping Complex and Water Theme Park is located at Pandan Perdana, Bandar Ampang, Selangor. (The Edge)

Lion Industries: To acquire land, buildings for RM47.13m. Lion Industries’ unit Amsteel Mills SB (AMSB) entered into a sale and purchase agreement with Yinson Corp SB for the proposed acquisition of land together with buildings erected thereon worth RM47.13m. The property is a leasehold industrial land measuring 3.23 hectares (or 7.98 acres) located in Klang, Selangor together with buildings erected thereon. (StarBiz)

SKB Shutters: Unit proposes land purchase for RM36m. SKB Shutters has accepted an offer from Paragon Pinnacle SB to acquire a 117.35-acre tract of land in Kuala Selangor, Selangor, for RM36m. The land was earmarked for a guarded light and/or medium industrial development known as Phase 2, Eco Business Park V, measuring 9.8 acres . (StarBiz)

NetX: Signs to provide Syariah-compliant loan at MYISCO wallet. NetX, which slipped into the red for the second quarter ended May 31, 2022 (2QFY22), entered into a deal on July 29 to provide its Syariah-compliant loan products to customers of fintech company MYISCO SB. (The Edge)

Market Update

US markets ended last week on better footing as investors went back into recently-beaten down stocks in the technology sector, while also looking beyond inflationary concerns. Earnings reports have also been encouraging with more than half of S&P 500 companies reporting results, and about 72% of those names beating expectations. On the day, the Dow Jones Industrial Average and S&P 500 gained 1.0% and 1.4% while the Nasdaq Composite jumped 1.9% higher. Over in Europe, markets also ended the day better as investors also looked through corporate earnings while reacting positively to a better-than-expected 2Q GDP growth for the region despite the escalating gas crisis and record-high inflation numbers. UK’s FTSE 100 rose 1.1%. France’s CAC 40 and Germany’s DAX gained 1.7% and 1.5% meanwhile. Earlier in the day, Asian markets were mostly lower however after the Chinese government signaled that it is unlikely to try supporting the economy and downplayed its 5.5% GDP growth target. The Shanghai Composite Index fell 0.9% as a result while the Hang Seng Index tumbled 2.3%, with technology-based stocks the major losers. Japan’s Nikkei 225 closed fractionally lower at 27,801pts.

Source: PublicInvest Research - 1 Aug 2022