US: Weekly jobless claims fall; fourth-quarter growth trimmed . The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, continuing to signal persistently tight labour market conditions. Initial claims for state unemployment benefits decreased 3,000 to a seasonally adjusted 192,000 for the week ended Feb 18, the Labor Department said. Economists polled by Reuters had forecast 200,000 claims for the latest week. Claims have been hemmed in a tight 183,000-206,000 range this year. They have been consistently low despite high-profile layoffs in the technology sector and interest-rate sensitive industries. Economists have long argued that the big job cuts by Twitter, Microsoft, Amazon.com and Meta, the parent of Facebook, which over-hired during the pandemic, were not representative of the overall economy. (Reuters)
US: GDP jumps less than previously estimated in 4Q . Revised data released by the Commerce Department showed the US economy grew by slightly less than previously estimated in the fourth quarter of 2022. The report said real GDP jumped by 2.7% in the fourth quarter compared to the previously reported 2.9% surge. Economists had expected GDP growth to be unrevised. The Commerce Department said the slower than previously estimated growth primarily reflected a downward revision to consumer spending that was partly offset by an upward revision to nonresidential fixed investment. (RTT)
EU: Eurozone inflation slows less than estimated . Eurozone inflation slowed less than estimated in Jan and remained at an elevated level, final data from Eurostat showed. The harmonized index of consumer prices gained 8.6% on a yearly basis in Jan, following Dec's 9.2% increase. A similar lower rate was last seen in June 2022. Although inflation slowed for the third consecutive month in Jan, the rate remained elevated. Moreover, annual inflation for Jan was upwardly revised from the initial estimate of 8.5%. Core inflation that excludes energy, food, alcohol and tobacco, rose slightly to 5.3% from 5.2%. The Jan core rate was revised up from 5.2%. (RTT)
UK: British retailers expect sales to fall in March: CBI . UK retailers expect sales to decline next month and remained pessimistic about the business outlook, survey results from the Confederation of British Industry showed. A net 2% of retailers said their sales volume increased in the year to Feb, the Distributive Trades Survey showed. This was better than the -23% registering a fall in sales in Jan and economists' forecast of -13%. However, a net 18% of retailers said their sales volume will decline in March. The survey showed that a net 6% of retailers forecast business situation to deteriorate over the coming three months. Nonetheless, the balance improved from -22% in the preceding period. On the price pressure, the survey showed that price growth remained near multi-decade highs in Feb. The corresponding balance fell to +80% from +82% in Nov. A balance of 80% expects prices to rise again next month. (RTT)
China: Says its consumer market had 'strong' recovery in Jan . China's consumer market recovery was "strong" in Jan, the Commerce Ministry said, in one of its first optimistic assessments of consumption, which until this year had been reined in by a weak economy and tough Covid-19 policies. Reviving consumer demand quickly is critical for an economic recovery this year, as the country's exports stagger amid weakening global demand and the ailing property market struggles to get back on its feet. China's 3% economic growth rate last year was one of its weakest rates in nearly half a century, hurt by harsh Covid-19 curbs that were abruptly lifted in Dec. (Reuters)
Hong Kong: Inflation rises to 2.4%, highest in 4 months . Hong Kong's consumer price inflation accelerated further in Jan to the highest level in four months, largely due to higher utility and food costs, data released by the Census and Statistics Department showed. The consumer price index, or CPI, climbed 2.4% YoY in Jan, faster than the 2.0% rise in Dec. Further, this was the strongest inflation since Sept 2022, when prices had risen 4.4%. Prices of utilities grew the most, by 20.6% annually in Jan. Clothing and footwear costs rose 5.8%, and basic food prices were 5.0% more expensive. Netting out the effects of all the government's one-off relief measures, the underlying inflation also rose to 2.4% from 2.0%, partly due to the early arrival of the Lunar New Year. (RTT)
Singapore: Inflation rises slightly to 6.6%. Singapore's consumer price inflation rose slightly at the start of the year amid rising costs for food and transport, but was much less than expected, while a renewed acceleration was seen in core consumer prices, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed. The consumer price index, or CPI, climbed 6.6% YoY in Jan, slightly faster than the 6.5% increase in the previous month. Economists had forecast inflation of 7.1%. The MAS core inflation climbed to 5.5% in Jan from 5.1% in Dec, led by higher charges for services, food and retail, and other goods, along with the increase in the GST rate. Economists had expected core inflation of 5.6%. (RTT)
Berjaya Assets: Sells shares in BCorp for RM7.2m. Berjaya Assets wholly-owned subsidiary Berjaya Times Square SB has disposed of 24.1m shares, representing a 0.43% equity interest, in Berjaya Corp (BCorp) for RM7.2m or 30 sen per share. Following the disposal via a direct business transaction on Feb 23, Berjaya Assets and its subsidiaries (BAssets Group) are left with 241.5m shares, or a 4.32% stake, in BCorp. The cash proceeds from the disposal will be utilised for repayment of borrowings for the BAssets Group. (The Edge)
PetChem: 4Q net profit falls to RM481m on compressed margins. Petronas Chemicals (PetChem) expects a challenging first half in 2023 as the group continues to face slow demand and higher costs due to inflation. Managing director and CEO Mohd Yusri Mohamed Yusof said this was especially true for its Europe and US markets as the prices of petrochemical products continue to fluctuate. He noted that the prices of urea have unexpectedly declined sharply despite the ongoing Russia-Ukraine war. More positively, however, Mohd Yusri said the reopening of China and the relaxation of its zero-Covid policy is positive for the chemicals sector, especially for polymers and olefins, which have recovered slightly in recent weeks. (StarBiz)
Hap Seng: Net profit rises to RM950.7m in FY22 on lower tax expense. Hap Seng Consolidated’s net profit rose by 6% to RM950.7m for FY2022 from RM900.4m a year earlier, mainly due to lower tax expense attributable to capital gains not subject to tax. Revenue for the fiscal year increased by 18% to RM7.1bn from RM6.0bn previously. For the 4QFY22, Hap Seng posted a lower net profit of RM98.0m versus RM300.5m in the year-ago period, affected mainly by lower contributions from the plantation and property divisions. (StarBiz)
Allianz: 4Q Net profit rises 7.5% to RM166.3m. Allianz Malaysia expects to maintain its growth momentum by enhancing efficiency and competitiveness. The group will continue to focus on accelerating digital capabilities, with the aim of simplifying and scaling up processes and to create timely customer focused solutions. For its 4Q22, AMB’s net profit rose to RM166.3m from RM154.7m in the previous corresponding period, while revenue in the fourth quarter rose to RM1.70bn from RM1.67bn a year earlier. (StarBiz)
Unisem: 4Q net profit jumps 16.7%, declares 2 sen dividend. Unisem (M) expects the performance of the group to be satisfactory for FY23. Despite the economic uncertainties, geo-political issues, and interest rates concerns, the outlook of the group remains positive. The semiconductor group’s net profit jumped 16.7% to RM67.1m in the 4QFY22 from RM57.5m. Revenue for the quarter rose to RM453.6m against RM426.4m last year while earnings per share rose to 4.16 sen from 3.56 sen previously. Unisem approved a third interim dividend of 2.0 sen per share for FY22. (StarBiz)
Hektar REIT: 4Q NPI slips 19% on higher property operating expenses. Hektar Real Estate Investment Trust (Hektar REIT)’s net property income (NPI) for the 4QFY2022 declined 18.8% to RM10.0m from RM12.4m a year earlier, dragged by higher property operating expenses. Despite an 11.66% rise in quarterly revenue to RM27.9m from RM24.9m previously, the REIT's NPI was slashed by property operating expenses surging 41.67% to RM17.9m versus RM12.6m. (The Edge)
The FBM KLCI might open higher today after US stocks crept higher on Thursday, following the release of more economic data suggesting that the Federal Reserve will press ahead with its agenda to tighten monetary policy. The blue-chip S&P 500 closed up 0.5%, and the tech-heavy Nasdaq Composite added 0.7%. A rally at the opening dissipated by late morning, but stocks advanced again after lunchtime. US chipmaker Nvidia surged 14% after its fourth-quarter results released on Wednesday beat analysts’ expectations and the company signalled its intentions to push further into the artificial intelligence sector. In Europe, where the region-wide Stoxx 600 closed 0.1% higher, while Germany’s Dax rose 0.5% and France’s CAC 40 climbed 0.2%. In the UK, the FTSE 100 lost 0.3%, but Rolls-Royce shares jumped almost 24% after beating earnings forecasts.
Back home, Bursa Malaysia ended lower on Thursday, amid cautious market sentiment, ahead of the re-tabling of Budget 2023 on Friday. At the closing bell, the benchmark FBM KLCI had fallen by 6.35 points or 0.43% to end at 1,457.65, from Wednesday's close at 1,464.0. In the region, Hong Kong’s Hang Seng index fell 0.4%, while China’s CSI 300 lost 0.1%.
Source: PublicInvest Research - 24 Feb 2023
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Created by PublicInvest | Mar 21, 2024