Economy

US: Consumer price growth slows to 5.5% in Nov . The Commerce Department released its report on US personal income and spending in the month of Nov, although the focus was on a closely watched reading on consumer price inflation. The reading on inflation, which is said to be preferred by the Fed, showed the annual rate of consumer price growth slowed to 5.5% in Nov from an upwardly revised 6.1% in Oct. (RTT)

US: Consumer sentiment improves more than previously estimated in Dec . The University of Michigan released its revised reading on US consumer sentiment in the month of Dec, showing sentiment unexpectedly improved more than previously estimated. The report showed the consumer sentiment index for Dec was upwardly revised to 59.7 from the preliminary estimate of 59.1. (RTT)

US: New home sales unexpectedly surge for second straight month in Nov . New home sales in the US unexpectedly showed a sharp increase for the second consecutive month in Nov, according to a report released by the Commerce Department. The report said new home sales surged by 5.8% to an annual rate of 640,000 in Nov after soaring by 8.2% to a revised rate of 605,000 in Oct. (RTT)

China: To ensure stability in growth, employment . China will focus on ensuring stability in growth, employment and prices to keep major economic indicators within a proper range, further stabilise and sustain economic development and secure a good beginning for economic performance next year, according to the decisions made at the State Council executive meeting chaired by Premier Li Keqiang. The meeting pointed out that the economy has sustained the momentum of recovery and stable growth, yet its foundation is not solid. (Xinhua)

Singapore: Nov core inflation rises 5.1%. Singapore's key consumer price gauge rose 5.1% in Nov, only slightly higher than forecast, official data showed. The core inflation rate - the central bank's favoured price measure - was unchanged from the 5.1% rise in Oct. A Reuters poll of economists had forecast a 5% increase in Nov. Headline inflation rose to 6.7%, more than economists' forecast of 6.45%. (Reuters)

Taiwan: Industrial output falls most since 2019 as demand wanes . Taiwan’s industrial production contracted at the fastest rate in almost four years in Nov as slumping global demand continued to hurt the economy. Industrial production fell 4.9% last month compared to a year ago, according to a statement from Taiwan’s Ministry of Economic Affairs, the biggest drop since March 2019. (Bloomberg)

South Korea: Growth outlook revised down to 1.6% in 2023. South Korea has revised down its 2023 economic growth outlook amid rising worries about a global economic downturn. Real gross domestic product, adjusted for inflation, was forecast to expand by 1.6% in 2023, according to the Economy and Finance Ministry. It was down 0.9ppts compared to the estimate unveiled six months earlier and lower than the outlooks of 1.8% from the Organisation for Economic Cooperation and Development and 1.7% from the Bank of Korea. This year’s growth outlook was slightly lowered to 2.5% from the previous 2.6%. (Xinhua)

Markets

Apex Equity (Neutral, TP: RM1.03): MD Choong Chee Meng resigns after ACE Group's exit. Datuk Choong Chee Meng, who controls ACE Group, formerly the second largest shareholder of Apex Equity has resigned as Apex Equity's group managing director. His resignation follows the disposal of ACE Group's stake in Apex Equity earlier this month, shortly after the Securities Commission Malaysia (SC) went to court to prevent the group from taking control of Apex Equity. (The Edge)

MyEG: Plans to distribute Agmo shares as dividend-in-specie to shareholders. My EG Services plans to distribute its entire 25.8% equity interest in Agmo Holdings by way of dividend-in specie to its shareholders. The stake comprising 84m shares is currently held via its wholly-owned MY EG Capital SB. On completion of the distribution, based on an entitlement date that is yet to be fixed, MYEG Capital will cease to be a major shareholder of Agmo. The proposed dividend-in-specie is to reward shareholders by allowing them to hold shares directly in Agmo, instead of through the group. (The Edge)

Samaiden: 531 kWp PV system at Sunway Nexis commences operations. A rooftop photovoltaic system solar investment project at Sunway Nexis here by Samaiden Group's wholly-owned subsidiary commenced operations. Samaiden Capital Management SB will operate and maintain the system, which has a capacity of 531kWp for a duration of 20 years. The group expects the generation of 12.5m kWh over the two decades to reduce approximately 8,400 tonnes of carbon emissions. (The Edge)

Industronics: Gets CIC, Bluemount Financial to finance Kedah Airport project. Industronics via a consortium has been shortlisted for the Kedah Aerotropolis development project (Kedah Airport project) worth EUR3.3bn (RM15.5bn). The consortium comprises Industronics, Hong Kong-based stockbroking firm Bluemount Financial Group Ltd and China-based sovereign wealth fund China Investment Corp (CIC). (The Edge)

Comintel: Gets RM228m building award. Comintel Corp has secured a contract worth Rm227.6m from Mightprop SB to build a 48-storey apartment block with 671 units of serviced apartments in Damansara Perdana, Sungai Buloh in Selangor. (StarBiz)

ATA IMS: Receives termination notice from Dyson. ATA IMS has received fresh notices of termination of contract from Dyson Manufacturing SB and Dyson Operations Pte Ltd. ATA IMS noted its units, JABCO Filter System SB and Winsheng Plastic Industry SB, received the notices of termination dated 12 Dec and 22 Dec from Dyson Manufacturing and Dyson Operations. (StarBiz)

Boilermech: Acquires 35% TERA stake. Boilermech Holdings has entered into a share acquisition agreement with leong Jit Min for the acquisition of 245,000 shares, or a 35% stake, in Tera VA SB for RM8.2m cash. Tera is principally in the business of installation of solar green power energy products and electrical machineries products. (StarBiz)

Sarawak Cable: Appoints Baker Tilly Malaysia as auditor after EY retires. Sarawak Cable has appointed Baker Tilly Monteiro Heng PLT (Baker Tilly Malaysia) as its auditor until the conclusion of its next AGM. (The Edge)

Market Update

Most markets were closed for Christmas holiday yesterday. Meanwhile, benchmark indexes in Shanghai and Tokyo saw modest gain, with both Shanghai Composite and Nikkei 225 rising 0.7%. China’s National Health Commission announced that it will stop requiring inbound travellers to go into quarantine starting from January 8, in a major step towards easing curbs on its borders, which have been largely shut since 2020. China's management of COVID-19 will also be downgraded to the less strict Category B from the current top-level Category A, the health authority said in a statement, as the disease has become less virulent and will gradually evolve into a common respiratory infection. FBM KLCI was up 0.4% to close at 1,474.68 on Friday. ATA IMS has received fresh notices of termination of contracts from Dyson Manufacturing and Dyson Operations and the effective date is 31 March 2023. MYEG Services plans to distribute its entire 25.8% equity interest or 84m shares in Agmo Holdings by way of dividend in-specie to its shareholders.

Source: PublicInvest Research - 27 Dec 2022