Economy

US: Business inventories rise 0.2% in Feb, slightly less than expected. Business inventories in the US saw a modest increase in the month of Feb. The business inventories edged up by 0.2% in Feb after slipping by a revised 0.2% in Jan. Economists had expected business inventories to rise by 0.3% compared to the 0.1% dip originally reported for the previous month. (RTT)

US: Retail spending fell in March as consumers pull back. Spending at US retailers fell in March as consumers pulled back after the banking crisis fuelled recession fears. Retail sales, which are adjusted for seasonality but not for inflation, fell by 1% in March from the prior month. Investors chalk up some of the weakness to a lack of tax returns and concerns about a slowing labour market. (CNN)

US: Industrial production climbs more than expected as utilities output spikes. Industrial production in the US increased by more than expected in the month of March. The Fed said industrial production climbed by 0.4% in March after edging up by a revised 0.2% in Feb. Economists had expected industrial production to rise by 0.2% compared to the unchanged reading originally reported for the previous month. (RTT)

EU: Ireland residential property price growth eases 5.0%, lowest in 22 months. Ireland's residential property price index continued its rising trend in Feb, though at the slowest pace in nearly two years. Residential property prices climbed 5.0% YoY in Feb, following a 6.1% gain in Jan. Prices have been rising since Nov 2020. Further, the latest rate of growth was the slowest since April 2021, when prices had risen 4.5%. (RTT)

EU: German industry association raises 2023 export growth forecast to 2%. Germany's BDI industry association expects exports to grow by 2% in 2023, double its forecast in Jan. Even with the improved outlook, Germany still lags behind the forecast for global trade of 2.5% export growth. Export growth has slowed considerably since Germany's post-pandemic recovery. (Reuters)

UK: Aviation group says cutting emissions will raise ticket prices. The UK aviation sector expects growth in demand for flying to slow in the coming decades because of higher ticket prices, as the industry turns to expensive new technologies to try to cut its carbon emissions. UK airlines, airports and aerospace manufacturers have committed to reaching net zero emissions by 2050, and insist that aviation can continue to grow even while the industry decarbonises. (Financial Times)

UK: Wave of UK strikes points to longer-term workforce crisis. The wave of strikes that has swept the UK is hitting the economy harder than initially expected and the disruption is set to continue, as health and teaching unions lay plans for industrial action that could stretch until Christmas. (Financial Times)

China: At China's largest trade fair, exporters worry about world economy. Chinese exporters exhibiting their products at the country's largest trade fair said the weak global economy was hurting their businesses, with many freezing investments and some cutting labour costs in response. The subdued mood at the Canton Fair in the southern city of Guangzhou suggests China's unexpected jump in exports in March may have reflected exporters catching up with orders delayed last year by COVID curbs rather than renewed economic strength. (Reuters)

Markets

Pertama Digital: Macquarie Bank's share subscription will now be in two tranches; the second to be part of its regularisation plan. Pertama Digital expects to raise up to RM43.8m based on an indicative subscription price of RM2.041 per share. Macquarie will then get a conditional right to further subscribe for up to 21.5m shares in the second tranche. The second tranche subscription is subject to Pertama Digital securing approval from Bursa Securities for its regularisation, and for the listing and quotation of the second tranche shares. (The Edge)

Computer Forms: Another substantial shareholder cuts stake. Computer Forms (M) said Cita Realiti SB has ceased to be its substantial shareholder after disposing of a 3.53% stake in the group. Cita disposed of the stake comprising 9.44m shares in the open market on March 23. This reduced Cita's stake in Computer Forms to 4.25% from 7.78% previously. (The Edge)

Fajarbaru: Unit secures logging rights from Yayasan Pahang for RM45.7m. A unit of Fajarbaru Builder Group (FBG) is paying RM45.74m to Lembaga Pemegang Amanah Yayasan Pahang (Yayasan Pahang) to secure timber logs in two locations in Kuantan, Pahang. The unit, Grand Achievement SB, has been appointed the sole and exclusive contractor to extract and purchase all standing timber logs at HS Remen Chereh, Mukim Hulu Kuantan, an approximate land area of 7,500 acres; and HS Berkelah, Mukim Hulu Lepar, an area of about 1,321 acres. (The Edge)

UCrest: To raise RM6m via private placement for working capital. UCrest plans to raise up to RM6.34m via a private placement, which will be used for working capital. In a bourse filing on April 14, UCrest is proposing to place out up to 70.48m new shares, representing 10% of its total issued shares, to independent third-party investors at an issue price to be determined later. As at March 31, UCrest's issued share capital stood at RM52.08m comprising 691.88m shares. (The Edge)

Alcom: To buy land in Klang for RM56m for mixed development. Alcom Group is buying 7.08 acres of land in Klang for RM56m to undertake a mixed development project. The aluminium products manufacturer and property developer is acquiring the land from 88 Legacy SB at a 3.45% discount to the aggregate market value of RM58m as appraised by an independent valuer. Atop the land, Alcom has proposed to develop a mixed development project comprising commercial lots, SOHO (shop office home-office) and service apartment. (The Edge)

PLS Plantations: Forms fresh cash crop JV with Landasan Erajaya. PLS Plantations binding term sheet with Landasan Erajaya SB was allowed to lapse after the two companies formed a direct joint-venture. The BTS lapsed on April 13 as PLS Plantations and Landasan Erajaya had formed PLS LESB SB, a direct 51:49 JV partnership to plant durian and cash crops, and undertake other plantation activities. (The Edge)

Atta Global: Changes name to Mayu Global. Atta Global Group's shares and warrants will be traded under its new name Mayu Global Group with effect from April 18, replacing the old stock short name “Atta”. Atta had in a circular to shareholders last month said the change of name will better reflect the company’s new corporate identity and vision. (The Edge)

Market Update

The FBM KLCI might open lower today after US stocks fell on Friday as investors looked past a rally in bank stocks, following better-than-expected corporate earnings from some of the country’s biggest lenders and focused on the outlook for interest rates. JPMorgan Chase beat estimates with first-quarter profit rising 52%. Wells Fargo and Citigroup also exceeded analysts’ expectations for earnings. JPMorgan led the gainers, up 7.6%, as the KBW Nasdaq bank index added 1.1%. The results indicated that the turmoil in the US banking sector last month had little immediate effect on the profitability of the biggest companies, which also helped boost shares in European lenders. Still, the blue-chip S&P 500 declined 0.2% on Friday, but added 0.8% in the week. The tech-heavy Nasdaq Composite lost 0.4% on Friday, but gained 0.3% across five sessions. In Europe, the region-wide Stoxx 600 finished 0.6% higher at its highest level in a year. Germany’s Dax gained 0.5% while France’s CAC 40 rose 0.5% to another record high.

Back home, Bursa Malaysia closed flat on Friday, with the key index rising marginally by 0.1% on late bargain hunting, in line with the positive regional performance. At the closing bell, the FBM KLCI had edged up by 0.91 of a point to 1,435.13, from Thursday's close at 1,434.22. In the region, the CSI 300 closed up 0.6% and the Hang Seng index rose 0.5%.

Source: PublicInvest Research - 17 Apr 2023