Economy

US: Inflation data to test market’s bets on future Fed easing. A closely watched US inflation report this week could help settle one of Wall Street’s most pressing questions: whether the market has correctly pegged the near-term trajectory for interest rates. Following last month’s banking crisis, investors have become more convinced the Federal Reserve will cut rates in the second half to ward off an economic downturn. Such bets have pushed bond yields lower, supporting the giant tech and growth stocks that hold sway over broad equity indexes. The S&P 500 has gained 6.9% so far in 2023. But the central bank’s more restrictive rate outlook sees borrowing costs remaining around current levels through 2023. (Reuters)

US: Bank of Canada seen on hold even as economy accelerates. The Bank of Canada is expected to take in stride surprising recent economic strength and leave interest rates unchanged at its meeting, pinning its hopes on activity cooling as higher borrowing costs sink in. Last month, the Bank of Canada became the first major global central bank to pause its rate-hiking campaign, after lifting its benchmark rate to a 15-year high of 4.50%. It said no further tightening would be needed if the economy slows, or even moves into a slight recession. (Reuters)

EU: Austrian banks unaffected by banking turmoil. Austria's government is monitoring the global banking turmoil although there are so far no signs of it spreading to the country's financial sector, Finance Minister Magnus Brunner said. He also defended Raiffeisen Bank International (RBI) (RBIV.VI) which has come under fire for continuing to operate in Russia despite the war in Ukraine. (Reuters)

UK: PM to meet US President Biden in Northern Ireland. Prime Minister Rishi Sunak will meet Joe Biden in Northern Ireland this week. Having helped broker the 1998 deal, the US remains an influential voice in Northern Ireland's politics and has sought to protect the peace from the strains caused by Britain's exit from the European Union. Sunak will greet Biden on Apr 11 when Air Force One lands for what will be a closely watched visit to both sides of the Irish border at a time of heightened political uncertainty in Northern Ireland. (CNA)

China: Tensions with Taiwan loom ever larger. Attention on April 10 will be fixed on the final day of China’s three-day military drills around Taiwan. The exercises, which Beijing launched after Taiwan’s President Tsai Ing-wen met with US House Speaker Kevin McCarthy in California last week, involve China simulating precision strikes on Taiwan and encircling the island with around 10 warships and dozens of fighter jets. (Reuters)

India: Lack of trade policy will undercut its economic rise. India remains blinded by its huge domestic market. This was underlined two weeks ago when the government released its latest trade policy - three years late. A new policy is supposed to be produced every five years, and this one was due in 2020. It was supposedly delayed so the Indian government could analyse and respond to the vast shifts in the global trading environment brought on by the pandemic. No such rethinking is visible in the document. (CNA)

Markets

UEM Sunrise (Neutral, TP: RM0.33): Issues RM70m three-year Islamic notes in nominal . UEM Sunrise Bhd has completed a RM70m IMTN in nominal value. The property developer said the new IMTN, which has a three-year tenure, matures on 7 April 2026. The proceeds would be utilised for the company and its subsidiaries’ shariah-compliant general corporate purposes. It would be used to buy land and companies, for investments, to finance project development and infrastructure cost, capital and general expenditures, as well as to refinance Islamic financing or outstanding loan facilities. (The Edge)

Press Metal: Secures export deal worth RM780m . Press Metal has secured an immediate export sale of aluminium ingots worth RM110m from Hong Kong’s Daching Enterprises Ltd and the companies had also sealed a five-year export deal of the same product for RM670m. Simon Chan, director of Daching and chairman of Xiamen Xiashun Aluminium Foil Co Ltd, expressed the group’s interest to continue sourcing products from Malaysia due to their quality, service delivery, sustainability and professionalism. (StarBiz).

NWP Holdings: Inks RM36 mil deal with China Gezhouba Group to mine marine sand offshore Melaka. NWP Holdings through its indirect subsidiary, NOOA Marine SB, has secured a marine sand mining and transportation project in the sea around Melaka for two years from Gezhouba Engineering (Malaysia) SB. (The Edge).

Fajarbaru: Wins RM125.3m contract from Penang Development Corp . Fajarbaru Builder Group has secured a construction contract worth RM125.3m from Penang Development Corporation (PDC). Fajarbaru said its wholly owned subsidiary Fajarbaru Builder SB accepted a letter of award from PDC to build three blocks of affordable apartments in Seberang Perai Selatan, Penang. The contract will be for the Phase Four of a mixed development project comprising Twenty-five Phases. The contract period is 36 months commencing on 15 June 2023 and shall be completed on 14 June 2026. (StarBiz)

Betamek: Signs 25-year solar PPA with ManagePay . Betamek has partnered Managepay Systems to incorporate solar energy utilisation at its electronic products manufacturing facility in Rawang, Selangor for a 25-year period. Betamek has entered into an agreement for ManagePay to install, operate and maintain solar panels at its Rawang facility with a minimum capacity of 515.2 kWp. (StarBiz)

Harn Len: To acquire 100% stake in Almal Resources for RM54.72mil . Harn Len Corp Bhd is acquiring 100% equity interest in Almal Resources SB from Datuk Mohamed Nizam Mohamed Jakel for RM54.72m. Harn Len said the purchase consideration would be satisfied via the issuance and allotment of 31.3m new shares of the company and a cash consideration of RM32.8m. The resolution was voted for and duly carried out during the company’s EGM. (The Edge)

Market Update

Last Friday, most major stock markets were closed for Good Friday Holiday while in the region, performance was mixed with the Shanghai Composite added 0.45%. Australia's ASX lost 0.3% and Japan's Nikkei 225 tacked on 0.17%. Bursa Malaysia snapped a three-day losing streak to end the week slightly higher on Friday, with the main index inching up 0.15% on bargain hunting. At the closing bell, the FBM KLCI had risen 2.15 points to 1,427.04, from Thursday's closing at 1,424.89. The barometer index opened 0.03 of a point lower at 1,424.86, and traded sideways during the morning session, but was lifted up towards the end of trading hours. It moved between 1,421.62 and 1,427.08 during the day. Market breadth was positive, as gainers beat decliners 437 to 367, while 363 counters were unchanged, 1,049 untraded, and 13 others suspended.

Source: PublicInvest Research - 10 Apr 2023