HEADLINES

Economy

US: Inflation progress gets harder in last mile down. US inflation probably moved sideways at best in Oct, highlighting the uneven path of easing price pressures in the home stretch towards the Fed's target. The core CPI, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared to Sept's readings. The overall CPI probably increased 0.2% for a fourth month, while the YoY measure is projected to have accelerated for the first time since March. (Bloomberg)

EU: Romanian trade gap widens in Sept. Romania's foreign trade deficit increased in Sept from a year ago as imports grew faster than exports, figures from the National Institute of Statistics showed. The trade deficit rose to EUR2.57bn in Sept from EUR2.16bn in the corresponding month last year. In Aug, there was a shortfall of EUR2.87bn. Exports rose only 0.3% annually in Sept, while imports climbed by 4.3%. (RTT)

EU: Norway inflation lowest since Jan 2021, Producer prices fall further. Norway's CPI eased to the lowest level in more than three-and-a-half years in Oct, while producer prices fell for the second straight month, separate reports from Statistics Norway showed. The CPI rose 2.6% YoY in Oct, slower than the 3.0% gain in Sept. Further, this was the lowest inflation since Jan 2021, when prices had risen 2.5%. (RTT)

China: Economy still faces deflation risk. The Chinese economy still faces the risk of slipping into a deflationary trap. Data released by the National Bureau of Statistics showed that CPI softened to 0.3% in Oct from 0.4% in Sept. Moreover, this was the weakest in four months. Meanwhile, core inflation that excludes prices of food and energy rose to 0.2% from 0.1% in the previous month. Data showed that producer prices continued to decline in Oct. Prices were down 2.9% annually after falling 2.8% in the previous month. (RTT)

China: Nears record USD1trn trade surplus as Trump returns. China's trade surplus is on track to hit a fresh record this year, increasingly leaving it on a collision course with some of the world's biggest economies by aggravating an imbalance in global commerce that risks provoking President-elect Donald Trump. The difference between Chinese exports and imports is set to reach almost USD1trn if it continues to widen at the same pace as it has in the year to date, according to Bloomberg calculations. (Bloomberg)

Japan: BoJ cautious on rate hike timing, Oct summary shows. The BoJ board members said they need to be cautious on the timing of future rate hike, a summary of opinions showed. As the bank has been expecting to raise the policy interest rate at a moderate pace, it has time to monitor the future course of the US economy, including that after the presidential election. Another member said it is necessary to take time and exercise caution when raising the policy interest rate. (RTT)

India: Inflation to rise further to 5.8% on rising food costs. CPI in India climbed to a 14-month high of 5.8% in Oct primarily due to a spike in vegetable and edible oil prices, a Reuters poll of economists predicted, a shade below the central bank's tolerance threshold of 6.0%. Food prices, which make up nearly half of the inflation basket, likely increased at a faster pace last month. Tomatoes, a key ingredient in every Indian kitchen, are expected to have surged by double digits in price as uneven rains disrupted production. (Reuters)

Hong Kong: Waiting time for Hong Kong public rental flats remains unchanged at 5.5 years. The average waiting time for a public rental flat in Hong Kong remained unchanged at 5.5 years in the third quarter of 2024, with authorities noting that while applicants were being housed more quickly in the New Territories, fewer homes were available for allocation. The Housing Authority revealed the figures for general applicants, families or elderly households, had remained at 5.5 years, as recorded previously. (South China Morning Post)

New Zealand: RBNZ's unusually long summer break argues for extra insurance on rates. New Zealand's central bank will be under greater pressure to ease policy aggressively this month as its rate meeting calendar leaves an unusually long three-month gap until its next gathering, arguing for extra insurance against an economic slump. (Reuters)

Markets

Ecoscience: Bags RM200m pellet plant construction job. Ecoscience International has accepted an LoA from Wilhelmina Energy Malaysia SB for the engineering, procurement and construction of the TG2 pellet plant in Kuantan, Pahang, worth RM200m. The constructor of palm oil mills and facilities said the completion date for the construction work shall be 24 months from the commencement date of Dec 2, 2024. There are no foreseeable significant risks other than the usual operational risks associated with the construction works. (StarBiz)

KTI Landmark: Wins RM50m sub-contract in Labuan. Newly listed KTI Landmark said it has won a sub-contract under the Armed Forces Family Housing (RKAT) construction project at the Labuan Air Base, worth RM50m. KTI said the sub-contract was awarded to Jawat Johan SB, and its tenure is 14 months, starting from Nov 25. This marks the second award received by KTI as the industrialised building system specialist sub-contractor for the RKAT project. With this new award, KTI said the total contract sum secured by the company for the year 2024 stands at RM214.4m. (The Edge)

Destini: Bags Mindef contract worth RM33m. Destini has secured a contract worth RM33.1m with the Ministry of Defence (Mindef) for comprehensive maintenance services for airborne safety and survival equipment. The three-year contract begins on Nov 11, 2024 and will extend through to Nov 10, 2027. As part of the contract terms, Destini will provide a performance bond of RM550,800 and participate in the Professional Training and Education for Growing Entrepreneurs, Ready to Work (PROT-G-RTW) programme, which is a national initiative aimed at workforce readiness. (The Edge)

TMC Life Sciences: Receives request for EGM to remove director. TMC Life Sciences has received special notices from major shareholders, Sasteria (M) Pte Ltd and Tunku Ismail Ibni Sultan Ibrahim, to requisition an EGM. Sasteria and Tunku Ismail together hold more than half of the total voting rights in TMC Life Sciences. The requisitioned EGM, called in accordance with Section 311 of the Companies Act 2016, will propose the immediate removal of Wan Nadiah Wan Mohd Abdullah Yaakob. (StarBiz)

Carzo Holdings: To cease core business. Carzo Holdings (CHB) is proposing to cease its core business of distributing fresh fruits and fruit products, with immediate effect. The company said this was in view of the consecutive net losses recorded by the group for the FYE June 30, 2023 and June 30, 2024 of RM18.9m and RM6.6m, respectively, as well as capital deficiency of RM12.1m recorded as at June 30, 2024. The management has been taking the necessary steps to address its capital deficiency and cashflow position improve the cashflows of the group since July 2024. (StarBiz)

DXN: Substantial shareholder Gano Global trims stake. DXN Holdings' substantial shareholder Gano Global Supplements Pte Ltd has trimmed its stake in the direct selling company to 8.8% after disposing of a 4.5% stake in a direct business deal. The company did not disclose the selling price, but Bloomberg data showed that the 4.5% stake, comprising 223.8m shares, changed hands at 60 sen per share for a total of RM134.3m. (The Edge)

MARKET UPDATE

The FBM KLCI might open higher today after US stocks rose Monday, led by those seen as benefiting the most from Donald Trump's re-election as president, but drops for some high-profile Big Tech stocks kept indices in check. The S&P 500 edged up by 0.1%, coming off its best week of the year following Trump's victory and a cut to interest rates by the Federal Reserve to bolster the economy. The Dow Jones Industrial Average rose 304 points, or 0.7%, while the Nasdaq composite gained 0.1%. Tesla was the strongest force pushing upward on the S&P 500 after rising 9.1%. Its leader, Elon Musk, has become a close ally of Trump's, and its stock jumped nearly 15% the day after the election and has kept rising. Stock markets elsewhere have swung following Trump's election amid worries about increased tariffs and disruptions to global trade. They were mixed Monday, with European indices rising while South Korea's and Hong Kong's sank. Back home, the FBM KLCI dropped 11.98 points or 0.74% to 1609.26.

Source: PublicInvest Research - 12 Nov 2024