HEADLINES

Economy

US: Factory orders decrease in line with estimates in Sept. New orders for US manufactured goods declined in line with economist estimates in the month of Sept, according to a report released by the Commerce Department. The Commerce Department said factory orders fell by 0.5% in Sept, matching expectations. However, the report said the decrease in factory orders in Aug was revised to 0.8% from the previously reported 0.2%. The decline by factory orders in Sept came as orders for durable goods slid by 0.7%, while orders for non-durable goods edged down by 0.2%. The Commerce Department also said shipments of manufactured goods decreased by 0.4% in Sept after falling by 0.7% in Aug. (RTT)

EU: Eurozone manufacturing downturn continues. The euro area manufacturing downturn continued in Oct albeit at the slowest pace in five months, survey data published by S&P Global showed. The HCOB manufacturing PMI increased to 46.0 in Oct from 45.0 in Sept. The flash score was 45.9. The score suggests that the sector posted its slowest fall since May. Nonetheless, factory activity shrank for the twenty-eighth successive month, marking the longest downturn since the survey began in 1997. According to GDP nowcast, which takes into account numerous other indicators in addition to the PMI, industry output could shrink by 0.1% in the fourth quarter. (RTT)

EU: Turkey gets little relief as inflation slows less than expected. Turkey's inflation eased slightly less than expected last month, likely reinforcing the view among many economists that an interest-rate cut is off the table this year. Inflation slowed to 48.6% annually in Oct from 49.4% in Sept, according to official data released. Economists surveyed by Bloomberg had expected a figure of 48.3%. Monthly prices, the favored measure of Turkish central bankers, eased to 2.88% from 2.97% in Sept. Clothing and shoes prices contributed the most to the monthly price gains, with an increase of more than 14%. (Bloomberg)

EU: Spain manufacturing grows most since early 2022. Spain's factory sector expanded at the fastest pace in over two-an-a-half years in Oct, driven by significant growth in output and new orders amid an improvement in market demand, results of the latest purchasing managers' survey by S&P Global showed. The HCOB Spain manufacturing PMI rose to 54.5 from 53.0 in Sept, surpassing the 53.1 reading economists had expected. The latest reading was the strongest since February 2022. (RTT)

EU: Italy's manufacturing downturn deepens in Oct, PMI shows. Italian manufacturing activity contracted for a seventh month running in Oct and at a faster pace than the month before, a survey showed, amid persisting declines in output and new orders. The HCOB Global PMI for manufacturing in the euro zone's third-largest economy fell to 46.9 from Sept's 48.3, sinking further below the 50 mark that separates growth from contraction. All the main components of the index came in below the key 50 threshold, with the output sub-index decreasing to 46.8 from 47.4 the month before and the new orders indicator declining to 45.1 from a previous 45.7. (Reuters)

India: Manufacturing activity growth gains momentum. India's manufacturing sector growth accelerated in Oct as rising new orders lifted production and confidence, data compiled by S&P Global showed. The HSBC final manufacturing PMI rose to 57.5 in Oct from an eight-month low of 56.5 in Sept. The flash reading was 57.4. A score above 50.0 indicates expansion. The upturn in the sector was underpinned by stronger demand for goods. Respondents said the introduction of new products and successful marketing initiatives helped enhance sales performances. (RTT)

South Korea: Inflation cools to slowest pace since 2021. South Korea's inflation slowed more than expected, decelerating to the slowest pace since early 2021 and providing more scope for the central bank to accelerate its policy easing campaign next year should economic momentum sputter. Consumer prices advanced 1.3% in Oct from a year earlier, moderating from a 1.6% clip in Sept and easing for a third straight month, the statistics office reported. Economists surveyed by Bloomberg had forecast the pace of price growth would be 1.4%. (Bloomberg)

Markets

SD Guthrie (Neutral, TP:RM4.46): Collaborate with AME Elite on green industrial park development in JS-SEZ. SD Guthrie and AME Industrial Park SB a unit of AME Elite Consortium, have teamed up to develop a green industrial park within the Johor-Singapore Special Economic Zone (JS-SEZ). In a joint statement, the parties said the project will be developed on 641 acres of prime land in SD Guthrie's Kulai estate in Johor, and will include a dedicated solar park to provide the industrial park with green energy. (The Star)

Bina Puri: Bags RM113.29m contract for water supply project in Sarawak. Bina Puri Holdings' wholly owned subsidiary, Bina Puri Builder SB (BPB), has been awarded a RM113.29m contract by Tokoh Ilham SB for a water supply project in Serian, Sarawak. Bina Puri said BPB will be the contractor to complete water pipelines and civil and structural works for the water project. "The project known as 'Proposed Serian Regional Water Supply Phase II (Stage 1)' falls under the Sarawak Rural Water Supply Department," it said. Bina Puri said the project is expected to take 29 months to complete, with a target completion date of 9 April, 2027. (Bernama)

Datasonic: Buys 51% stake in Innov8tif Holdings from Revenue Group for RM40m cash. Innov8tif, a two-year-old company, specialises in ID verification technology to support e-know-your-customer (e-KYC) and e-know-your-business (e-KYB) and anti-fraud processes, customer onboarding process automation and mobile biometric authentication, said Datasonic. The remaining 49% equity interest in Innov8tif is held by Innov8tif Consortium SB, whose shareholders are Law Tien Soon, Lee Chin Seong, Soh Peng Nam, Law Seeh Key, and ACE Market-listed Securemetric. Seeh Key is a chief executive officer at Securemetric, a provider of digital security products and solutions. (The Edge)

Tuju Setia: Bags RM411m job to build Sunway Serene 2. Tuju Setia Bhd today bagged a RM411m contract to build a high-rise and landed residential development, or Sunway Serene 2, in Kelana Jaya. The company said its subsidiary, Pembinaan Tuju Setia SB (PTS) received the Letter of Award (LOA) from Sunway Serene SB for the development project. Sunway Serene SB is a wholly owned subsidiary of Sunway. (New Straits Times)

MN Holdings: New job wins bring orderbook to all-time high of RM625.8m. MN Holdings hit a record high orderbook of RM625.8m after securing contracts worth a combined RM315m since the start of its financial year in 1 July 2024. Executive director Datuk Dang Siong Diang said the company has secured a few underground utilities and substation engineering projects, amongst others, and three substation engineering projects which contributed a total contract value of about RM285.2m to its order book. He said the orderbook has grown about RM192.5m since the end of the last financial year in 30 June, 2024. (The Star)

Carimin Petroleum: Gets five-year services contract from Shell. Carimin Petroleum said it has secured a five-year contract from Shell for the provision of pan-Malaysia maintenance, construction, modification (MCM), and hook-up and commissioning (HUC) services. The group said the contract awarded by Sarawak Shell and Sabah Shell Petroleum Company Ltd covers all offshore facilities operated by the two companies. (The Edge)

MARKET UPDATE

The FBM KLCI might open flat today after US stocks drifted lower Monday ahead of a momentous week full of potential flashpoints in Washington, D.C., and around the world. The S&P 500 slipped 0.3%, though it remains near its record set last month. The Dow Jones Industrial Average fell 257 points, or 0.6%, while the Nasdaq composite slipped 0.3%. Intel fell 2.9%, and chemical producer Dow sank 2.1% in their first trading since getting notified they'll no longer be included in the Dow Jones Industrial Average. Warren Buffett's Berkshire Hathaway dropped 2.2% and was one of the heaviest weights on the market after reporting a drop in operating profit for the latest quarter. In the oil market, the price for a barrel of US crude rose 2.8% to $71.03 after Saudi Arabia and other oil producers said they would delay plans to increase the amount of crude they produced. Brent crude, the international standard, rose 2.7% to $75.08 for a barrel. The price of Brent is still down for the year so far, in part because of worries about how much demand will come from China given its economic challenges. The Standing Committee of China's National People's Congress is meeting this week, and analysts say the government may endorse major spending initiatives to boost economic growth amid troubles for the country's real-estate industry. Beyond that meeting and Election Day in the United States, this week will also feature the latest meeting of the Federal Reserve, where the widespread expectation is for it to cut its main interest rate for a second straight time. In stock markets elsewhere, indices were mostly lower in Europe after rising in much of Asia. Back home, the FBM KLCI added 12.45 points or 0.78% to end at 1616.43.

Source: PublicInvest Research - 5 Nov 2024