PublicInvest Research

PublicInvest Research Headlines - 26 Sept 2022

Publish date: Mon, 26 Sep 2022, 12:43 PM
0 9,647
An official blog in I3investor to publish research reports provided by PublicInvest Research team.

All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to:

9th Floor, Bangunan Public Bank
6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur
T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718


US: Leading economic index extends decline to six straight months in Aug. The index of leading US economic indicators declined for the sixth consecutive month. Its leading economic index fell by 0.3% in Aug after sliding by a revised 0.5% in July. With the continued decrease, the LEI slumped by 2.7% over the six-month period between Feb and Aug, a reversal from the 1.7% jump over the previous six months. Among the index's components, only initial unemployment claims and the yield spread contributed positively over the last 6 months—and the contribution of the yield spread has narrowed recently. Furthermore, labour market strength is expected to continue moderating in the months ahead. The average workweek in manufacturing contracted in four of the last six months—a notable sign, as firms reduce hours before reducing their workforce. Activity would continue slowing more broadly throughout the US economy and likely contract, citing the Federal Reserve's rapid tightening of monetary policy as a major driver of the slowdown. While the headline index continued to decline, the report showed the coincident economic index edged up by 0.1% in Aug after climbing by 0.5% in July. The lagging economic index also increased by 0.7% in Aug after rising by 0.4% in July. (RTT)

EU: Eurozone private sector downturn deepens in Sep. The Eurozone economic downturn deepened in Sep with worsening performances in both manufacturing and services with demand easing sharply as a result of the cost of living crisis. The flash composite output index declined to a 20-month low of 48.2 in Sep from 48.9 in the previous month. The score has remained below the neutral 50.0 mark for the third straight month signalling a continual economic contraction throughout the third quarter. Excluding the pandemic shocks, the latest score was the weakest since May 2013. Among sectors, manufacturing led the downturn, with factory output falling for a fourth straight month. (RTT)

UK: Retail sales decline sharply in Sep. UK retail sales declined sharply in Sep on the cost of living crisis. The retail sales balance fell more-than-expected to -20% in Sep from +37% in Aug. The score was seen at +10%. A net 13% of retailers expect sales volumes to fall again in Oct. Internet sales volume also declined notably in Sep, with the balance falling to -19% from -7% in Aug. A net 14% said internet sales will fall next month. Retail sales volumes have once again fallen in the year to Sep, as the cost-ofliving crisis continues to weigh on households' spending. (RTT)

UK: Private sector shrinks most since early 2021. The UK private sector shrank at the fastest pace since early 2021 on the negative impacts of high costs and a weaker economic outlook. The composite output index came in at a 20-month low of 48.4 in Sep versus 49.6 in the previous month. The score was forecast to ease moderately to 49.0. The sector-wise data showed a renewed decline in services activity, which was the principal driver of the lower headline figures. The services PMI slipped to 49.2 from 50.9 a month ago. Services activity shrank for the first time since Feb 2021. Meanwhile, the manufacturing PMI rose to 48.5 from 47.3 in the prior month. (RTT)

South Korea: Producer prices slipped 0.3% in Aug. Producer prices in South Korea were down 0.3% on month in Aug, reversing a 0.3% monthly increase in July. Among the individual components, agriculture, forestry and marine products were up 2.5% on month, while manufacturing products fell 1.4%, utilities climbed 3.6% and services rose 0.3%. On a yearly basis, producer prices climbed 8.4% - slowing from the 9.2% acceleration in the previous month. (Bloomberg)

Taiwan: Industrial production growth improves further. Taiwan's industrial production growth improved for the second straight month in Aug, largely driven by robust output expansion in the mining and quarrying sector. Industrial production rose 3.68% YoY in Aug, faster than the revised 1.63% increase. The annual growth in manufacturing output accelerated to 3.87% from 1.61%. Mining and quarrying production logged a double-digit growth of 10.25%, and electricity and gas supply output grew 1.89%. MoM, industrial production fell 0.64% in Aug, reversing a 0.96% rise in July. (RTT)

Singapore: Inflation highest since June 2008. Singapore's CPI accelerated at a faster-than-expected pace in Aug to reach its highest level in more than 14 years. Consumer prices climbed 7.5% YoY in Aug, following a 7.0% rise in July. Further, the latest inflation was the highest since June 2008, when prices had grown the same 7.5%. MAS core inflation rose to 5.1% in Aug from 4.8% in the previous month. The upward trend in inflation was largely driven by a 24.1% surge in private transport charges. Food inflation accelerated to 6.4% from 6.1%. Services inflation also rose to 3.8% from 3.5%. Accommodation inflation increased marginally to 4.7% and 4.6% in the previous month. On a monthly basis, consumer prices moved up 0.9% in Aug and the core CPI increased 0.5%. (RTT)

Australia: Manufacturing PMI inches higher in Sep. The manufacturing sector in Australia continued to expand in Sep, and at a fractionally higher pace with a Manufacturing PMI score of 53.9. That's up slightly from 53.8 in Aug, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Production levels expanded for an eighth successive month in Sep and at the sharpest pace since April. Accelerated output growth reportedly stemmed from strengthening demand conditions within the sector. In line with the aforementioned, new orders increased at a solid pace. (RTT)


EcoFirst: Buys the remaining stake in BCM for RM78.4m . Ecofirst Consolidated is acquiring the remaining 49% stake in BCM Holdings SB, to fully own the 4.18-acre freehold land in Sungai Besi for RM78.4m. The 2-contiguous freehold is located along Jalan Satu within Chan Sow Lin in KL, and it has the development order (DO) approved by Kuala Lumpur City Hall (DBKL) with a plot ratio of 1:9.3. The property developer, in a statement, said EcoFirst had entered into a conditional share sale agreement with Tan You Tiong for the proposed acquisition. (StarBiz)

Salcon: Secures RM210m contract from PAAB . Salcon has been awarded Package 3 for the design and construction of a residual conveyance and disposal system for the Langat 2 water treatment plant by Pengurusan Aset Air Bhd (PAAB). The scope of the project includes the design and construction of a pipe conveyor of approximately 2,000m long from the water treatment plant to the residual storage shelter near Bukit Enggang Balancing Reservoir. The project forms part of the proposed development of Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur. (The Edge)

Konsortium Transnasional: Bags RM41m works contract for PR1MA Pahang project . Konsortium Transnasional (KTB) has bagged a RM41.01m contract for earthworks and building, internal and major infrastructure works for a Perumahan Rakyat 1Malaysia (PR1MA) Pahang mixed development in Lipis, Pahang. KTB’s wholly owned subsidiary Transnational Builder SB received a Letter of Award from Living Stones Development SB for a two-year contract to work on the project, which comprises 162 single-storey semi-detached houses, 103 single-storey terrace houses, and 11 two-storey shophouses on 34 acres of government land. (The Edge)

Seremban Engineering: Wins RM72m contract. Seremban Engineering (SEB) has secured a RM72m subcontract works from MIE Industrial SB, to supply, fabricate, and install steel structures for a factory project in Seremban. SEB said the contract was for the construction of structural steel works for the SDI Energy Malaysia SB (SDIEM) Complex 2 Factory Project (Zone A). The project duration is 10 months from the date of commencement of work, which is expected to be Sept 26 and be completed on May 30, 2023 or within any extended period. (StarBiz)

AME REIT: Hong Leong Bank chairman Quek Leng Chan emerges as substantial unitholder in AME REIT . Malaysia’s second richest man, Tan Sri Quek Leng Chan, has emerged as a substantial unitholder in AME Real Estate Investment Trust (REIT) after acquiring 29.1m units in the REIT over two days. This was after AME REIT, the REIT arm of industrial property developer AME Elite Consortium had made its debut on Bursa Malaysia. He did so through Hong Leong Assurance (HLA) and Hong Leong MSIG Takaful. (The Edge)

Mulpha International: Gets takeover offer at RM2.30 a share . Mulpha International has received an unconditional voluntary takeover offer from several joint offerors for the company's shares not already held by them, at RM2.30 a share. The joint offerors intend to acquire the remaining 155.53m shares or 49.98% of Mulpha's total issued shares. Based on back-of-the-envelope calculations, the offer price of RM2.30 a share values the offer at RM357.71m. (The Edge)

Market Update

The FBM KLCI might open lower today after US and European stocks tumbled on Friday, the dollar scaled a 22-year high and bonds sold off again as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession. The Dow narrowly missed confirming a bear market as a deepening downturn in business activity across the euro zone, and US business activity contracting for a third straight month in September, left Wall Street wallowing in a sea of red. On Wall Street, the Dow Jones Industrial Average fell 1.62%, the first major US stock index to fall below its June trough on an intraday basis. The S&P 500 and the Nasdaq Composite, already in bear market territory, fell 1.72% and 1.85%, respectively. The pan European STOXX 600 index closed down 2.34%, its biggest weekly loss in three months.

Back home, Bursa Malaysia ended at an intraday low on Friday, with selling pressure seen across the board on concerns over the global economic outlook amid rising interest rates worldwide. At the closing bell, the benchmark FBM KLCI slipped 14.18 points, or 0.99%, to 1,424.98 from Thursday's close of 1,439.16. In the region, Hong Kong's Hang Seng Index fell 1.18% to 17,933.27, South Korea’s Kospi slipped 1.81% to 2,290 while Shanghai’s SSE index fell 0.66% to 3,088.37.

Source: PublicInvest Research - 26 Sept 2022

Related Stocks
Be the first to like this. Showing 0 of 0 comments

Post a Comment