Economy

US: 10-year Treasury yield dips after topping 5%. US Treasury yields ticked lower Monday, hovering around multiyear highs as investors continue to assess the prospect of higher-for-longer interest rates from the Fed. The yield on the benchmark 10-year Treasury note fell by 8bps to 4.84%, while the yield on the 30-year Treasury bond slipped around 6.8 bps to 5.02%. Yields move inversely to prices. (CNBC)

EU: Consumer confidence weakens to -17.9. Pessimism among euro area consumers increased somewhat in October. The seasonally adjusted flash consumer confidence rose to -17.9 from -17.8 in Sept. Economists had forecast a score of -18.3. The corresponding indicator for the EU remained unchanged at -18.7 in Oct. However, both readings remained well below their long-term average. The final readings for Oct consumer confidence are set to be released with the monthly economic sentiment survey data on 30 Oct. (RTT)

EU: German economy likely contracted in Q3. The German economy probably shrunk somewhat in the third quarter. The central bank noted that weak foreign demand for industrial products was one of the factors that weighed on economic activity. Moreover, the rising financing costs dragged investment and in turn depressed domestic demand, in construction and in industry. Further, the bank noted that the economy received tailwind from the robust labor market and strong wage increases amid easing inflation. (RTT)

EU: Turkey consumer confidence improves to 74.6. Turkey's consumer confidence improved for the second straight month in Oct. The consumer confidence index rose to a 3-month high of 74.6 in Aug from 71.5 in the previous month. However, a reading below 100 signals a pessimistic outlook. All four sub-indices of consumer confidence improved in Oct from the previous month. The index measuring the current financial situation of households climbed to 59.7 from 56.2. Similarly, their own financial situation in the next 12 months rose from 68.9 to 72.6. (RTT)

Singapore: Inflation rises slightly in Sept. Singapore's CPI rose slightly in Sept, while core inflation decelerated more than expected, data released by the Monetary Authority of Singapore and the Ministry of Trade and Industry revealed. Consumer prices posted an annual growth of 4.1% after climbing 4.0% in Aug. The rate matched economists' expectations. The acceleration reflects a pickup in private transport inflation which more than offset the decline in core and accommodation inflation. By contrast, core inflation slowed to 3.0% from 3.4% in Aug largely due to lower inflation for food and retail and other goods. This was also below economists' forecast of 3.1%. (RTT)

Taiwan: Jobless rate rises slightly in Sept. The unemployment rate in Taiwan increased marginally in Sept, the Directorate General of Budget Accounting and Statistics reported. The seasonally adjusted unemployment came in at 3.44% in 3.42% versus 3.42% a month ago. In the same period last year, the rate was 3.64%. On an unadjusted basis, the jobless rate dropped to 3.48% in Sept from 3.56% in Aug. Unemployment decreased to 416,000 from 426,000. Data showed that total employment declined by 5,000 from the previous month to 11.54m. From the previous year, employment grew by 144,000 in Sept. (RTT)

China: Property crisis is upending tens of thousands of lives. Homebuyers, workers, developers and the government each played their part in an apparent economic miracle. For more than two decades, real estate has been the growth engine behind China’s unparalleled economic success story, riding a debt-fueled wave of expansion to a value of USD52trn in 2019, a full quarter of the nation’s output. Global investors flooded in, pouring more than USD180bn into dollar bonds. But over the past three years, the government’s campaign to rein in the debt-laden sector has had drastic consequences. (Bloomberg)

Markets

Revenue Group: Obtains online moneylending licence. Revenue Group’s unit has received approval from the Local Government Development Ministry (KPKT) for an online moneylending licence. With this newly acquired licence, whollyowned Revenue Harvest SB is poised to provide innovative elending services customised to meet the evolving needs of Malaysian businesses. The new licence is effective Oct 12, 2023 until March 31, 2025 and is renewable every two years. (The Edge)

Carlo Rino: Adjusts exit offer price as part of transfer to ACE Market. Carlo Rino Group (CRG) which is in the process of transferring its listing from the Leading Entrepreneur Accelerator Platform (LEAP) Market to the ACE Market on Bursa Malaysia, has adjusted its exit offer price from 23 sen to 22.5 sen. CRG said the exit offer price was adjusted after taking into consideration the interim single-tier dividend of half a sen per CRG share in respect of the financial year ending June 30, 2024, with the entitlement date on Sept 1, 2023, and paid by the company on Sept 15, 2023. (The Edge)

Multi Usage: Debt restructuring fiasco in 2009 remains unresolved, auditor expresses qualified opinion for FY23. Multi-Usage Holdings (MUH) has once again received a qualified opinion from its external auditor for its latest financial statement, with regards to the group’s debt restructuring exercise in 2009. Messrs UHY said that except for the matter related to the debt restructuring, MUH’s financial statement for the year ended June 30, 2023 (FY23) gives a “true and fair” view of its financial position, performance and cash flow. (The Edge)

MGB: Inks MoU to explore opportunities in Medina. MGB has entered into a memorandum of understanding (MoU) with Almqr Development Co and Alameriah Real Estate Development Company to explore investment opportunities in Medina in Saudi Arabia. The collaboration would relate to pioneering, innovative, and distinctive projects, and other projects that have a developmental and social goals, subject to the terms and conditions in the MoU. (StarBiz)

Yinson: Ink partnership with State IT corporation to develop Selangor’s sustainable initiatives. Yinson Holdings has inked a strategic partnership agreement with Selangor Information Technology and Digital Economy Corporation (Sidec) to implement and expand sustainable initiatives in Selangor. The collaboration will begin with the promotion of electric bikes and battery-swapping solutions offered through Yinson’s green technologies business unit, Yinson GreenTech (YGT). (The Edge)

Classita: Independent forensic auditor issues report on unit's allegedly suspicious transactions. Troubled lingerie maker Classita Holdings announced that its independent forensic auditor Virdos Lima Consultancy (M) SB issued an investigation report concerning allegations of suspicious and irregular transactions at its wholly -owned subsdiairy Caely (M) SB (CMSB). The report comes after more than one year since Virdos Lima was appointed as an independent forensic auditor. (The Edge)

MARKET UPDATE

The FBM KLCI might open flat today after the benchmark U.S. Treasury yield on Monday pulled back after crossing 5% - a 16-year high - but stock indices were mixed and oil slipped amid continued fighting between Israel and Hamas. On Wall Street, major stock indices were mixed. The Dow Jones Industrial Average fell 0.58%, the S&P 500 lost 0.17% and the Nasdaq Composite added 0.27%. Meanwhile, the Pan-European STOXX 600 index lost 0.13%.

Back home, Bursa Malaysia ended lower on Monday in tandem with the negative performance across the regional markets, coupled with extended selling activities from foreign funds. At the closing bell, the FBM KLCI declined 2.92 points to 1,438.12 from Friday’s closing of 1,441.04. In the region, Japan’s Nikkei 225 slid 0.83% to 30,999.55, South Korea’s Kospi dipped 0.76% to 2,357.02.

Source: PublicInvest Research - 24 Oct 2023