Economy

US: Consumer confidence improves much more than expected in Dec. Consumer confidence in the US has improved by much more than anticipated in the month of Dec, according to a report released by the Conference Board. The Conference Board said its consumer confidence index jumped to 110.7 in Dec from a downwardly revised 101.0 in Nov. Economists had expected the consumer confidence index to rise to 103.4 from the 102.0 originally reported for the previous month. (RTT)

US: Existing home sales unexpectedly rebound after five straight monthly declines. After reporting five consecutive monthly declines in US existing home sales, the National Association of Realtors released a report showing existing home sales unexpectedly rebounded in the month of Nov. NAR said existing home sales climbed by 0.8% to an annual rate of 3.82m in Nov after plunging by 4.1% to a rate of 3.79m in Oct. (RTT)

EU: Consumer confidence strongest in 5 Months. Euro area consumer sentiment improved for the second month in a row to its highest level in five months, reflecting the reducing pessimism among households, preliminary survey data from the EC showed. The flash consumer confidence index rose to -15.1 from -16.9 in Nov. Economists had forecast a score of -16.5. The latest reading was the highest since July, when it was at the same level. (RTT)

UK: Big UK inflation drop bolsters bets on BoE cuts early next year. British inflation plunged in Nov to its lowest rate in over two years, prompting investors to pile further into bets that the BOE will cut interest rates in the first half of next year. The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in Oct, pushed down in part by cheaper petrol, for its lowest reading since Sept 2021, the Office for National Statistics (ONS) said. (Reuters)

China: Keeps benchmark lending rates unchanged. China's central bank maintained its benchmark lending rates after the rate on the medium-term lending facility was kept unchanged last week. The PBOC kept the one-year loan prime rate, or LPR, unchanged at 3.45%. The bank had previously lowered the one-year rate by 10 basis points in Aug. New and outstanding loans are based on the one-year LPR. (RTT)

Taiwan: Nov export orders rise for first time in 15 months, outlook remains dim. Taiwan's export orders rose for the first time in 15 months in Nov, as shoppers in the US and China ramped up their purchases in the run up to the year-end holiday season, but the government forecast growth would contract again in Dec. Export orders last month edged up 1.0% from a year ago to USD50.6bn, missing average analyst forecasts of 4.3% growth in a Reuters poll. (Reuters)

Markets

LKL: Sells land in Serdang for RM7m. LKL International’s whollyowned subsidiary, LKL Advance Metaltech SB has entered into a sale and purchase agreement with 8 Food Avenue SB for the disposal of a freehold land, including a three-storey semi-detached factory for RM6.9m. The land is located in Seri Kembangan, Selangor and measures 972.9 sqm. LKL noted the proposed disposal is a strategic move to unlock its value and generate surplus cash. LKL intends to enhance its liquidity position and support its main business activities by reallocating these funds towards working capital and prospective investments. (StarBiz)

Willowglen MSC: Bags RM10.3m contract. Willowglen MSC has secured a RM10.3m contract from Singapore's PowerGas Ltd for the supply of pipeline and CCTV system renewal. The group said the contact commenced on Dec 19, 2023, and will be completed by March 18, 2026. The contract is expected to contribute positively to the group’s earnings and net assets per share for the financial years ending Dec 31, 2024, to 2026, it said. (StarBiz)

Mlabs Systems: Inks agreement to distribute LG Electronics products in Malaysia. Mlabs Systems, has inked a master sales agreement with LG Electronics (M) SB to distribute the latter's products in Malaysia. The announcement, follows the MoU that the group inked in June with LG Electronics that set out its interest in distributing LG's brand of products in the country. The new agreement, which supersedes and replaces the MOU, outlines the obligations and responsibilities of the signing parties in the distribution of LG products here. (The Edge)

Sunzen Biotech: Acquires remaining Ecolite and Yanming equity for RM24m. Sunzen Biotech proposes the acquisition of the remaining 30% equity in Ecolite Biotech and Yanming Resources for a total of RM24m, to be satisfied through the issuance of approximately 73.2m new ordinary shares at an issue price of RM0.295 per share. The acquisition aims to enhance Sunzen’s position in traditional Chinese medicines and herbal health foods, contributing positively to its financial performance. (The Malaysian Reserve)

XOX: Partners Uni Comms. XOX’s wholly-owned unit XOX Com SB has inked a MoU with Uni Comms International SB, a subsidiary of UCSI Group Holdings SB, to explore collaboration in the area of white-label mobile services. The partnership also aims to enhance the digital lifestyle of students from higher education institutions under the Mysiswa Programme, especially students from UCSI University, XOX told Bursa Malaysia. It said Uni Comms has a valid mobile virtual network operator licence within Malaysia to provide telecommunication and other related services to its subscribers. (StarBiz)

Teck Guan: 3Q net profit drops 84% amid lower operating margin. Teck Guan Perdana Berhad's net profit for the 3Q slumped by 84% to RM3.6m from RM22.5m a year ago, primarily due to a decrease in operating margin. Earnings per share also fell to 9.1 sen from 56.2 sen. Quarterly revenue decreased by 33% to RM91.3m from RM136.24m in the corresponding quarter of the previous year, mainly attributed to a decrease in selling prices. The group did not declare any dividend for the quarter under review. (The Edge)

MARKET UPDATE

The FBM KLCI might open lower today after global equities index fell yesterday after nine straight days of gains while Treasury yields fell as US economic data beat expectations and UK inflation slowed at a rate that took markets by surprise. On Wall Street, the Dow Jones Industrial Average fell 475.92 points, or 1.27%, to 37,082, the S&P 500 lost 70.02 points, or 1.47%, to 4,698.35 and the Nasdaq Composite dropped 225.28 points, or 1.5%, to 14,777.94. In commodities, global oil benchmark Brent hovered above US$80 a barrel amid jitters over global trade disruption and geopolitical tensions in the Middle East following attacks on ships in the Red Sea by Yemen’s Iran-aligned Houthi forces. European stocks finished higher Wednesday, with the Stoxx Europe 600 inde increasing 0.19% to 477.94. The FTSE 100 index increased 1.02% to 7,715.68, the French CAC 40 index rose 0.12% to 7,583.43 and the German DAX was flat at 16,733.05.

Back home, Bursa Malaysia ceded earlier gains to finish in the negative territory on Wednesday due to profit-taking activities in the late trading session, ending its seven-day winning streak. At the closing bell, the FBM KLCI dipped 1.11 points to 1,464.56, from Tuesday’s close of 1,465.67. The benchmark index opened 0.76 of-a-point better at 1,466.43 and moved between 1,464.09 and 1,470.79 throughout the day. The Shanghai blue chip CSI 300 index fell more than 1% on Wednesday. It is on course for a sixth straight weekly loss, which would be its worst weekly run in 12 years, and a record fifth consecutive monthly loss. The big picture remains challenging - deflation is taking hold, the huge property sector is imploding and the growth outlook is questionable at best.

Source: PublicInvest Research - 21 Dec 2023