HEADLINES

Economy

US: Homebuilder sentiment reaches seven-month high after election. Confidence among US homebuilders advanced to a seven-month high in Nov on a jump in sales expectations and optimism a Trump administration will ease regulatory burdens. A gauge of housing market conditions from the National Association of Home Builders (NAHB) and Wells Fargo climbed three points to 46 this month, exceeding all estimates in a Bloomberg survey of economists. (Bloomberg)

EU: Trade surplus increases in Sept. The euro area trade surplus increased notably in Sept as exports to the US surged ahead of the presidential election in Nov that saw Donald Trump winning the race. The trade surplus rose to EUR12.5bn in Sept from EUR9.8bn in the same period last year, data from Eurostat showed. Exports grew 0.6% on a yearly basis, offsetting the 2.8% decline in Aug. Meanwhile, imports dropped 0.6%, following the 2.7% fall in the previous month. (RTT)

UK: Creates new businesses at slowest rate since 2010. Britons started new businesses last year at the slowest rate since 2010, a potential warning sign for longer-term economic growth and productivity, according to official data. The number of new businesses started in the UK fell to 316,000 in 2023 from 337,000 in 2022, the Office for National Statistics (ONS) said. This reduced the 'business birth rate', the number of new businesses started as a percentage of the total number trading, from 11.5% to 11.0%, the lowest since 2010. (Reuters)

Japan: BOJ sees progress in wage-driven inflation, keeps Dec rate hike on table. BOJ governor Kazuo Ueda said the economy was progressing towards sustained wages-driven inflation and warned against keeping borrowing costs too low, leaving open the chance of another interest rate hike as early as next month. In a sign the BOJ was likely to push rates up again soon, Ueda said the bank must whittle down stimulus in a timely fashion as keeping real interest rates low for too long could accelerate inflation more than expected. (Reuters)

Thailand: 3Q GDP growth beats forecast, but risks seen ahead. Thailand's economy beat forecasts with its fastest growth in two years in the July-Sept quarter due to stronger investment, tourism and exports, but officials and analysts saw increased challenges to maintaining the momentum next year. GDP grew 3.0% in Q3 from a year earlier, National Economic and Social Development Council (NESDC) data showed, accelerating from revised annual growth of 2.2% in Q2, and beating the median forecast of 2.6% growth in a Reuters poll. (Reuters)

Markets

UEM Sunrise (Underperform, TP: RM0.70): Secures development approval for its first project in Perth, Australia. UEM Sunrise has received development approval for its 0.49ha site in Perth, Australia for a mixed-use development with a gross development value potential of AUD450m. In a press statement issued on Monday, the developer said that the approval, which involved Lots 1 and 2 at The Oval within Subiaco East, was issued by the Western Australian State Government's central land and development agency, DevelopmentWA. It is also the first mixed-use project approved within the Subiaco East masterplan. (The Edge)

EA Technique: Unit bags three contract extensions with PETRONAS for RM63.9m. EA Technique (M)'s wholly-owned subsidiary Libra Perfex Precision SB has secured three contract extensions with PETRONAS Floating LNG 1 (L) Ltd (PFLNG1) for a combined sum of RM63.9m. In a statement, the group said it secured a RM41m contract extension for tugboat services in Sept 2024, followed by two contract extensions for emergency standby vessel (ESV) services for PFLNG1 in Oct 2024, for RM22.9m. (StarBiz)

AWC: Unit bags RM48.56m upkeep job for Menara Seri Wilayah in Putrajaya. AWC's unit, Ambang Wira Facilities SB (AWFSB), has secured a 5-year RM48.56m maintenance and facilities management contract from the Works Department for the upkeep of Menara Seri Wilayah in Putrajaya. The building houses the Federal Territories Ministry. (BTimes)

Johor Plantation: Johor Corp gets RM30.99m integrated sustainable palm oil complex job. Johor Plantations Group (JPG) has appointed Johor Corp's indirect subsidiary, JL Projects SB, as the project management consortium (PMC) for the construction of an integrated sustainable palm oil complex, worth RM30.99m. In a filing with Bursa Malaysia, JPG said the PMC appointment is in connection with the construction of its palm oil complex at the Pasir Logok Estate, in Johor. (StarBiz)

Berjaya Corp: Sells 4.14pct stake in Redtone for RM29.76m. Berjaya Corporation's (BCorp) 100% owned subsidiary Juara Sejati SB (JSS) has disposed of 32m shares representing about 4.14% equity interest in REDtone Digital for RM29.76m or 93 sen per share. Following the disposal which made via a direct business transaction, BCorp and its subsidiaries now hold a total of 283.28m shares, representing about 36.65% equity interest, in REDtone. (BTimes)

Lagenda Properties: Doh Tee Leong buys controlling stake in Mercury Industries for RM34.7m. Lagenda Properties and Epicon's major shareholder Datuk Doh Tee Leong has bought a 59.88% interest in construction and property developer Mercury Industries for RM34.7m, or 90 sen a share, triggering an unconditional mandatory takeover offer of the company. (BTimes)

OMH: Sarawak smelter complex sustains minimal damage. OM Holdings Ltd's (OMH) smelter complex in Sarawak has sustained minimal damage following the overflow of molten material from casting moulds. On contact with water, this caused a localised blast of pressurised steam. Emergency response protocols were immediately activated and all personnel within the affected area were safely evacuated to the designated safety zones. (StarBiz)

MARKET UPDATE

The FBM KLCI might open higher today after most US stocks ticked higher Monday to recover some of their sharp slide from last week. The S&P 500 rose 0.4% for its first gain in three days. The Dow Jones Industrial Average slipped 55 points, or 0.1%, and the Nasdaq composite gained 0.6%. CVS Health rallied 5.4% after adding four new directors to its board. The health giant did so following discussions with a major investor, hedge-fund owner Glenview Capital Management. Its CEO, Larry Robbins, is one of the new directors. Trading of Spirit Airlines' stock, meanwhile, was halted after the budget carrier reached an agreement with its debtholders on a plan to take it through Chapter 11 bankruptcy protection. The airline will continue to fly while it restructures, but it will also likely wipe out the holdings of all its current stock investors. Stocks regained some momentum after giving back more than half their postelection gains at the end of last week. Investors had sent the S&P 500 nearly 4% higher in the days immediately following Trump's presidential win. Bank stocks, smaller companies and other areas of the market seen as the biggest winners from Trump's preference for lower tax rates, higher tariffs and lighter regulation did particularly well. In stock markets elsewhere, indices ended mixed in Europe following sharper swings in Asia. South Korea's Kospi jumped 2.2% after Samsung Electronics, the country's biggest company, announced a stock buyback plan. Back home, the FBM KLCI added 11.60 points or 0.73% to 1604.04.

Source: PublicInvest Research - 19 Nov 2024