HEADLINES

Economy

US: Weekly jobless claims fall; unemployment rolls shrink. The number of Americans filing new applications for unemployment benefits fell last week, suggesting the labor market continued to chug along and that the abrupt slowdown in job growth in Oct was an aberration. Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 217,000 for the week ended Nov 9. (Reuters)

US: Wholesale prices rose 0.2% in Oct, in line with expectations. Wholesale prices nudged higher in Oct, though largely in line with expectations and mostly consistent with the Fed cutting interest rates again in Dec, the Bureau of Labor Statistics reported. The PPI, which measures what producers get for their products, increased a seasonally adjusted 0.2% for the month, up one-tenth of percentage points from Sept. On a 12-month basis, headline wholesale inflation was at 2.4%. (CNBC)

EU: GDP growth confirmed at 0.4%, employment rises. The euro area economy expanded as initially estimated in the third quarter and employment growth showed an improvement, data from Eurostat showed. GDP climbed 0.4% sequentially, which was double the 0.2% expansion seen in the second quarter, flash estimate showed. On a yearly basis, economic growth increased to 0.9% in the third quarter from 0.6% in the previous quarter. (RTT)

EU: Slovakia GDP growth slows to 1.2%. The Slovakian economy grew at a slower pace in the third quarter, flash data from the Statistical Office of the Slovak Republic showed. GDP rose an unadjusted 1.2% YoY in the third quarter, following a 2.0% increase in the prior quarter. On a seasonally adjusted basis, the annual GDP growth eased to 1.7% from 2.1%. (RTT)

EU: Poland GDP shrinks 0.2% in Q3. Poland's economy contracted for the first time in a year, preliminary data from Statistics Poland showed. GDP fell 0.2% sequentially in the third quarter, reversing a revised 1.2% increase in the second quarter. On a YoY basis, GDP growth moderated to 1.7% the third quarter from 3.6% in the previous quarter. Seasonally unadjusted GDP expanded 2.7% annually in the Sept quarter, following a 3.2% rise in the Aug quarter. (RTT)

India: Oct merchandise trade deficit widens to USD27.14bn. India's merchandise trade deficit in Oct widened more than expected to USD27.14bn, driven by a rise in imports despite exports increasing YoY. Economists had expected the country's Oct trade deficit to be USD22bn, according to a Reuters poll, compared to USD20.78bn in the previous month. (Reuters)

Markets

MISC: Bumi Armada signs MoU to explore offshore business merger. MISC has signed a non-binding memorandum of understanding (MoU) with Bumi Armada to explore the possibility of merging with the latter's offshore business through an all-share transaction. The merged entity arising from the proposed merger would remain listed on Bursa Malaysia Securities. It said the combined entity would be positioned as one of the leading floating production businesses globally with the scale, resources and financial capacity to compete in the growing and capital-intensive offshore floating production segment. (StarBiz)

LBS Bina: Signs MoU for 10GW Green Hydrogen Plant in Sabah. LBS Bina Group has signed an MoU with Invest Sabah, the Sabah Forestry Development Authority (SAFODA), and Midwest Green SB (MGSB). LBS Bina said the MoU outlined a collaboration to explore the feasibility of promoting innovative renewable energy projects in Sabah. Among other initiatives, it included the proposed implementation of a 10GW Green Hydrogen Plant. (StarBiz)

LFE Corp: Secures RM19m electrical system contract with GDP Architects. LFE Corporation said that its wholly owned subsidiary, LFE Engineering SB, accepted an LoA from GDP Architects SB to serve as the nominated subcontractor for an RM19m electrical system installation project. The contract, which began on Sept 20, 2024, is scheduled for completion by July 19, 2025. LFE anticipates that the contract will positively impact earnings and net assets for the FYE Dec 31, 2024. (The Malaysian Reserve)

Pestech: Faces RM7.7m arbitration claim from Shandong Power Equipment. Pestech International's subsidiary, Pestech SB (PSB), is facing arbitration proceedings initiated by Shandong Power Equipment Co Ltd (SPECO) over a total claim of RM7.7m. The dispute stems from purchase agreements related to four key projects, namely the Olak Lempit project in Selangor, the Lachau project in Sarawak, the Sibiyu project in Sarawak, and the Junjung project in Kedah. SPECO is claiming approximately RMB7.6m (RM4.7m) for the Lachau, Sibiyu, and Junjung projects, and USD672,000 (RM3m) for the Olak Lempit project, in addition to general damages, interest, arbitration costs, and other reliefs. (The Malaysian Reserve)

Ranhill Utilities: Scraps plan to pursue water supply facility project in Indonesia with China Energy. YTL Power International's 53.2%-owned subsidiary Ranhill Utilities has scrapped plans to jointly pursue a public-private partnership project with China Energy International Group Co Ltd (CEIG) for the proposed development of a regional drinking water supply facility project in Indonesia. This follows the expiry of a MoU on Oct 29. Following the MoU expiry, neither party will have any claim against the other in respect of the memorandum. (The Edge)

NICE: Achieves milestone with first heap leach plant commissioning. Niche Capital Emas Holdings (NICE) has achieved a significant milestone in its mineral exploration journey with the successful commissioning of its first heap leach plant at the Sokor Gold Mine in Kelantan. This follows the completion of a comprehensive three-year exploration effort, culminating in a maiden mineral resource report of 17,100 ounces of gold. (The Malaysian Reserve)

MARKET UPDATE

The FBM KLCI might open lower today after US stocks slipped Thursday as the market's big burst following Donald Trump's election continued to cool. The S&P 500 fell 0.6%, though it's still near its all-time high set on Monday. The Dow Jones Industrial Average dropped 207 points, or 0.5%, and the Nasdaq composite sank 0.6%. The stock market broadly has been rising faster than corporate profits, which raises the volume on criticism from skeptics that it's gotten too expensive. The S&P 500 is still up nearly 25% for the year so far, on top of last year's leap of 24.2%. Smaller stocks also fell harder than the rest of the market, and the Russell 2000 index of small stocks lost 1.4%. It's a turnaround from the election's immediate aftermath, when the thought was that an "America First" president would benefit domestically focused companies more than big multinationals that could be hurt by tariffs and trade wars. In stock markets elsewhere, European indices rose, including a 1.4% jump for Germany's DAX. Asian markets were mixed, meanwhile. Hong Kong's Hang Seng dropped 2%, but South Korea's Kospi added 0.1%. Back home, the FBM KLCI slumped 10.82 points or 0.67% to 1600.68.

Source: PublicInvest Research - 15 Nov 2024