Economy

US: Q3 Labour productivity growth upwardly revised to 0.8%. US labour productivity increased by much more than initially estimated in 3Q. Labour productivity climbed by 0.8% in the third quarter compared to the previously reported 0.3% uptick. Economists had expected productivity growth to be upwardly revised to 0.5%. The upward revision to labour productivity, a measure of output per hour, came as the spike in output was upwardly revised to 3.3% from 2.8%, while the jump in hours worked was upwardly revised to 2.5% from 2.4%. (RTT)

EU: Eurozone Q3 GDP growth revised up to 0.3% on household spending, investment. The euro area economy posted a better than-initially estimated growth in the third quarter on household spending and investment, but the revision little changes the bleak outlook for a recession in the coming quarters. The 19-member currency bloc grew an upwardly revised 0.3% sequentially, but the pace was slower than the 0.8% expansion logged in the second quarter. The QoQ growth was revised marginally from 0.2% reported earlier. (RTT)

China: Exports & imports hurt by zero covid policy, weaker demand. China's exports and imports fell more than expected in Nov as strict Covid restrictions continued to disrupt supply chains as well as consumption, further darkening the growth outlook for the biggest Asian economy amid signs of an imminent global recession. Chinese shipments registered an annual decrease of 8.7% in Nov. Economists had expected a moderate 3.6% drop in exports after a 0.3% easing in Oct. (RTT)

Taiwan: Exports fall most in nearly 7 years. Taiwan's exports declined for the third straight month, and at the fastest pace in nearly 7 years, largely due to a plunge in global demand for plastics and rubber articles. Exports fell 13.1% YoY in Nov, much faster than the 0.5 fall in Oct. Economists had forecast a 6.7% drop. Further, this was the fastest rate of decline since Jan 2016, when exports had declined 13.2%. (RTT)

India: Central bank slows rate hikes on weaker growth outlook. India's central bank raised its benchmark interest rates for the 5 th policy meeting in a row due to sticky core inflation, but geared down the pace of tightening given the softness in economic growth outlook. The Monetary Policy Committee of the Reserve Bank of India voted 5-1 to hike its key interest rate, the repo, by 35bps to 6.25% with immediate effect. (RTT)

Australia: GDP climbs 5.9% on year in Q3. Australia's GDP expanded 5.9% on year in the 3Q2022. That was shy of expectations for an increase of 6.2% and up from 3.6% in the three months prior. On a seasonally adjusted quarterly basis, GDP picked up 0.6% - again missing forecasts and slowing from 0.9% in the previous 3 months. (RTT)

Thailand: Inflation slows on food price fall. Consumer price inflation in Thailand eased for the third month in a row amid a decrease in food prices as supplies increased. The consumer price index climbed 5.55 YoY in Nov, following a 5.98% rise in the previous month. Economists had expected inflation to ease to 5.86%. In Sept, the inflation rate was 6.41%. (RTT)

Markets

Solarvest: Eyeing a piece of EV infrastructure pie with PowerBee launch. Solarvest Holdings pushed through the electric vehicle (EV) charging port market with the launch of the EV charging and mobility solutions called PowerBee. "Leveraging on our existing renewable assets and expertise in solar, we are confident in Solarvest's development of green charging infrastructure (PowerBee) to provide reliable, accessible, and affordable clean energy solutions," Solarvest chief strategy officer Leon Liew Chee Ing said in a virtual press conference. (The Edge)

Muhibbah Engineering: Consortium bags RM322m job from Petronas Carigali . Muhibbah Engineering, via a consortium, has accepted a RM322m project award from Petronas Carigali SB related to the Gansar Project, 190 kilometres offshore Terengganu. The oil and services provider said the 22-month contract would involve the provision of engineering, procurement, construction and commissioning plus installation (EPCC+1) of Light Weight Structure (LWS), Duyong Brownfield Modification and Host Tie-In services for the Gansar Project. (Bernama)

KNM: Defaults on RM418m loans; warns of cross defaults in other facilities. KNM Group has defaulted on three credit facilities, two totalling USD23m (RM101.4m) and one of EUR68.5m (RM316.2m) on Dec 1, or about RM417.6m in all. KNM said it is presently in close negotiation with the lenders, although the repayment date has not changed from the Nov 30 deadline, following a previous extension. (The Edge)

Bonia: Unit to acquire KL property for RM35.5m. Bonia Corp is acquiring a tract of freehold land on Jalan Delima in Kuala Lumpur from Resaa Properties SB for RM35.5m. It said the purchase included the land measuring 1,403.71 sqm as well as a double storey bungalow and guard house. It added that the property is currently tenanted to a law firm. According to the group, the purchase price will be fully satisfied in cash via internally generated funds and bank borrowings. (StarBiz)

Sunview: Unit undertakes EPCC of solar energy facility for RM122m. Sunview Group has secured a RM122m contract from Nextenaga SB to undertake the engineering, procurement, construction and commissioning (EPCC) of the solar energy facility for the development of Nextenaga’s 29.99MWac Bukit Badong Large Scale Solar Photovoltaic in Bestari Jaya, Selangor. It said the scope of work includes, among others, project preliminaries, management and engineering as well as consultancy services, procurement of solar photovoltaic modules and equipment, earthworks, civil works and ancillary works, and testing and commissioning. (StarBiz)

Perak Transit: Withdraws from mining joint venture, seeks to improve ESG standards. Perak Transit announced the termination of the agreement it entered into with another company to jointly undertake limestone and silica sand-mining in Perak. The termination is part of the group’s strategy to improve its sustainable environmental, social and governance (ESG) standards, the Ipoh based transport terminal and bus operator said. (The Edge)

QES: SC greenlights QES Group’s stock listing transfer to Main Market. QES Group has secured approval from the Securities Commission (SC) for the transfer of its stock's listing from the ACE Market to the Main Market of Bursa Malaysia. (The Edge)

Market Update

The FBM KLCI might open lower after US technology stocks slipped on Wednesday against a backdrop of concerns about global growth as investors weighed weak Chinese export data against hopes that Beijing will ease further strict Covid-19 restrictions. The tech-heavy Nasdaq Composite gave up 0.5%, extending its declines this week. The benchmark S&P 500 fell 0.2%. This week’s stock market falls have also followed a report from the Institute for Supply Management on Monday showing that its index, which tracks economic activity in the US services sector, in November, expanded for the 30th month in a row. It unnerved investors who have been expecting the Federal Reserve to slow its interest rate rises when it meets later this month. In Europe the regional Stoxx 600 fell 0.6% and London’s FTSE 100 was down 0.4%, trading in a tight range.

Back home, Bursa Malaysia gave up earlier gains to end in negative territory on Wednesday, in line with the weak sentiment in regional markets, following negative cues from Wall Street overnight. At the closing bell, the benchmark FBM KLCI index stood at 1,466.88, down 4.67 points or 0.32%, from Tuesday's closing at 1,471.55. Stocks in Hong Kong tumbled after data from China overshadowed Beijing’s move to ease its stringent zero-Covid policies, as authorities try to quell discontent and seek to revive the world’s second-largest economy. China’s CSI index of Shanghai- and Shenzhen-listed shares slipped 0.3%, while Hong Kong’s Hang Seng index lost 3.2% following the release of November data showing China’s exports and imports contracted by their biggest margins in several years.

Source: PublicInvest Research - 8 Dec 2022