PublicInvest Research

PublicInvest Research Headlines - 24 Apr 2024

PublicInvest
Publish date: Wed, 24 Apr 2024, 11:11 AM
PublicInvest
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An official blog in I3investor to publish research reports provided by PublicInvest Research team.

All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to: https://www.publicinvestbank.com.my/pbswecos/default.asp

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HEADLINES

Economy

US: New home sales surge much more than expected in March. Substantial increase in new home sales in the US in the month of March. New home sales spiked by 8.8% to an annual rate of 693,000 in March after plunging by 5.1% to a revised rate of 637,000 in Feb. Economists had expected new home sales to rise to an annual rate of 668,000 from the 662,000 originally reported for the previous month. (RTT)

US: Business activity cools in April; inflation measures mixed. US business activity cooled in April to a four-month low due to weaker demand, while rates of inflation eased slightly even as input prices rose sharply, suggesting some possible relief ahead as the Fed looks for signs that the economy is ebbing enough to bring inflation down further. (Reuters)

EU: Business in services-led bounce in April. Overall business activity in the euro zone expanded at its fastest pace in nearly a year this month as a buoyant recovery in the bloc's dominant service industry more than offset a deeper downturn in manufacturing. The divide between services firms and factories was also evident in the country breakdown for Germany and France, the bloc's two biggest economies. HCOB's preliminary composite euro zone PMI bounced to 51.4 this month from March's 50.3, well ahead of expectations and marking its second month above the 50 level separating growth from contraction. (Reuters)

EU: French private sector moves closer to stabilization. France's private sector activity moved closer to stabilization in April on renewed expansion in the service sector. The flash HCOB composite output index hit an 11-month high of 49.9 from 48.3 in the previous month. While services activity expanded for the first time since May 2023, the accelerated decline in manufacturing output weighed on the pace of overall expansion. The services PMI registered 50.5, which was the highest score in eleven months. The score was forecast to climb to 48.9 from 48.3 in Feb. (RTT)

UK: Private sector activity expands most in 11 months. The UK private sector economy grew at the quickest pace in nearly a year in April amid a robust growth in service sector output. The composite output index rose to 54.0 in April from 52.8 in March. A reading above 50.0 indicates expansion in the private sector. Service sector growth was the fastest in eleven months on the back of rising business and consumer spending. The services PMI, climbed to 54.9 in April from 53.1 in March. At the same time, the manufacturing sector turned to contraction in April, as the PMI dropped to 48.7 from 50.3 in the previous month. (RTT)

Japan: Factory activity declines slow. Japan's factory activity contracted but approached the break-even point in April, suggesting the key sector is finally picking up after months of sluggishness. The au Jibun Bank flash Japan manufacturing PMI rose to 49.9 in April from 48.2 in March, remaining below the 50.0 threshold separating growth from contraction for 11 straight months. Still, the index was closest to the break-even level since slipping into contraction in June. The output and new orders, the two key subindexes contributing to the headline figure, contracted at the slowest pace in six and 10 months, respectively. (Reuters)

Singapore: March core inflation at 3.1% YoY, below forecast. Singapore's key consumer price gauge rose 3.1% in March on a yearly basis, lower than economists' forecasts. The core inflation rate, which excludes private road transport and accommodation costs, was lower than the 3.5% forecast. Headline inflation in March was up 2.7% from the same month last year. The central bank and the trade ministry in a joint statement pegged last month's decline in core inflation to lower food and services inflation. While inflation has fallen from its peak of 5.5% in Jan last year, it remains stubborn amid slowing economic growth and had reached a seven-month high in Feb. (Reuters)

Hong Kong: Inflation eases slightly to 2.0%. Hong Kong's consumer price inflation eased marginally in March after rising in the previous month. The CPI climbed 2.0% YoY in March, following a 2.1% rise in Feb. Food inflation softened to 1.9% in March from 2.2% in the previous month. Similarly, transport charges rose at a slightly slower pace of 2.2% versus a 2.3% increase a month ago. The annual growth in clothing and footwear prices slowed to 0.3% from 1.3%. (RTT)

Markets

Cypark Resources (Neutral, TP: RM0.86): 100MWac large scale solar plant starts initial operations. Cypark Resources Bhd today announced that its 100MWac Large Scale Solar 3 (LSS3) hybrid solar plant project reached the Initial Operations (IOD) milestone on 21 April 2024. The plant will reach full commercial operation within the coming two weeks. "The LSS3 hybrid solar plant project is in line with Malaysia's goals for energy transition and showcases the country's ability to lead in developing innovative and sustainable energy solutions," it said. (New Straits Times)

Crest Builder: Bags RM486m condominium project in Mont Kiara. Crest Builder Holdings said it had secured a condominium project valued at RM486m in Mont Kiara. The project, awarded by Kiaramas Development SB, involves the construction of three blocks of condominiums with car park podiums in Jalan Desa Kiara. The contract period is 42 months from 2 May. Last month, the group secured a RM448.5m contract for the Sunway Velocity 3 commercial development in Kuala Lumpur, awarded by Sunway Velocity Three SB. (The Edge)

Haily: Wins RM109.5m contract. Haily Group has accepted a letter of award worth RM109.5mil from Mandy Corp SB for the construction of a residential project in Pontian, Johor. In a filing with Bursa Malaysia, Haily said the contract will entail the construction of 332 units of double-storey terrace houses and a double chamber TNB sub-station. Split into two phases (Phase 4A and 4B), Haily said construction for Phase 4A will commence on May 2, 2024 and complete on 1 Jan 2026. Meanwhile, construction of Phase 4B will commence on 2 Aug, 2024 and complete on 1 April 2026. (The Star)

Reach Energy: Accepts RM30m loan for drilling activities. Reach Energy Bhd said that its sub-subsidiary, Emir-Oil LLP, has accepted a loan facility of USD6.4m (approximately RM30.3m) from RG-HCPI Fund. The facility will finance Emir-Oil’s capital expenditure for drilling activities related to well no. NK-103. RGHCPI Fund is a registered sub-fund of RG Strategy Fund VCC, incorporated in Singapore. (The Malaysian Reserve)

HHRG: Plans to raise up to RM18.14m via placement for working capital. HHRG aims to raise between RM16.1m and RM18.14m through a private placement of up to 10% of its expanded issued share capital to yet-to-be identified third-party investors, at a price to be fixed. The proceeds from the proposed corporate exercise that would involve up to 98.03m shares would be used for working capital in the biomass materials and valueadded products segment. (The Edge)

Ramssol: 1Q profit doubles as revenue surges on higher sales in Malaysia, Thailand. Ramssol Group, a human capital management (HCM) solutions provider, reported a near doubling of its first quarter profit mainly due to certain projects with higher profit margin and the distributorship of HCM licences. Net profit for the quarter ending 31 March 2024 (1QFY2024) rose to RM4.17m up from RM2.1m a year earlier. Earnings per share increased to 1.31 sen from 0.86 sen. Revenue jumped 123.48% to RM14.42m from RM6.45m in 1QFY2023 on higher sales in Malaysia and Thailand, particularly in HCM solutions and technology applications. (The Edge)

MARKET UPDATE

The FBM KLCI might open stronger today after US stocks rose for a second straight session in New York Tuesday, building on the prior day’s momentum following a round of mostly good corporate earnings, while European markets also rose. Sentiment was upbeat across major world indices thanks to easing Middle East worries, while traders are keenly awaiting the release this week of more major earnings and key US inflation data. On Wall Street, the broad-based S&P 500 advanced 1.2%, while the tech-rich Nasdaq Composite Index jumped 1.6%, and the Dow Jones Industrial Average finished up 0.7% In Europe, London’s FTSE 100 added 0.3 % on the session, while major indexes in Paris and Germany also finished higher. Key data out of Washington this week will provide a fresh idea about the US Federal Reserve’s rate-cutting plans, particularly updates on US gross domestic product and monetary policymakers’ preferred gauge of inflation.

Back home, Bursa Malaysia continued its upbeat momentum to end higher for the fifth consecutive day on Tuesday, thanks to buying from local and foreign institutions. At the closing bell, the FBM KLCI rose 2.05 points to 1,561.64 from Monday's close of 1,559.59. Elsewhere, Japan’s Nikkei 225 added 0.3%, Hong Kong’s Hang Seng Index jumped 1.9 % while the Shanghai Composite index was down 0.7 %.

Source: PublicInvest Research - 24 Apr 2024

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