HEADLINES

Economy

US: Black Friday spending in stores and online rose 3.4% YoY. Black Friday spending in US retail stores was muted this year in contrast to a more robust rise online, as bargain-hungry Americans skipped stores in favour of their phones and laptops. Sales at brick-and-mortar stores grew just 0.7% YoY, according to preliminary estimates by payments processor Mastercard. Yet US e-commerce sales increased by a hefty 14.6% online, according to Mastercard. (Reuters)

EU: Inflation climbs to 2.3% in Nov, meeting expectations. Annual euro zone inflation rose to 2.3% in Nov, statistics agency Eurostat said, climbing back above the ECB's 2% target. Economists had expected the 2.3% annual rate for the month, up from 2% in Oct. Price rises in the bloc have ticked higher for two straight months after dropping to 1.7% in Sept, as was expected due to the fading deflationary pull from energy prices. Core inflation, excluding volatile energy, food, alcohol and tobacco prices, held at 2.7% for a third straight month in Nov. The core rate is being propped up by the stickiness of services inflation, which only slid slightly to 3.9% in Nov from 4% during the previous month. (CNBC)

EU: German retail sales fall more than forecast. Germany's retail sales declined more than expected in Oct on falling non-food retail trade. Retail sales decreased by real 1.5% MoM in Oct, sharper-than-expected fall of 0.5%. Sales in food stores edged up 0.1% on month, while non-food sales fell 2.2% in Oct. On a yearly basis, retail sales advanced 1.0% compared to economists' forecast of 3.2% increase. In nominal terms, retail sales declined 1.1% on month but increased 1.9% from the same period last year. (RTT)

EU: French preliminary inflation at 1.7% in Nov, in line with forecasts. French consumer prices grew in line with expectations in Nov, with lower food prices and higher service prices compared to last year, preliminary data from statistics agency INSEE showed. France's harmonised inflation rate, adjusted for comparison with other euro zone countries, increased to 1.7% in Nov, up from 1.6% in Oct and in line with the 1.7% expected by economists surveyed by Reuters. Service prices rose 2.5% YoY, slightly accelerating from 2.3% in Oct. (Reuters)

China: Nov factory activity expands for second month as Trump threats loom. China's factory activity expanded modestly for a second straight month in Nov, an official survey showed, adding to a string of recent data suggesting a blitz of stimulus is finally trickling through the world's second-largest economy just as Donald Trump ramps up his trade threats. The National Bureau of Statistics PMI rose to 50.3, a seven-month high, from 50.1 in Oct, above the 50-mark separating growth from contraction and beating a median forecast of 50.2. (Reuters)

China: Home prices set to stabilise by 2026 after slower falls. China's home prices are expected to fall at a slower pace this year and next, and stabilise in 2026, a Reuters poll showed, as a slew of support measures to reverse a years-long property slump start to bear fruit. Analysts in the poll now expect home prices to fall 6.0% in 2024, versus a 8.5% decline tipped in a previous survey in Aug. In Oct, new home prices fell the most YoY since 2015, but MoM falls have narrowed. Prices are likely to dip 2.0% in 2025, and rise 1.6% in 2026. (Reuters)

Japan: Core inflation perks up, yen jumps on rate hike bets. Core consumer inflation in Japan's capital accelerated in Nov and stayed above the central bank's 2% target, as price pressures broadened, keeping alive market expectations for a near-term interest rate hike. The yen jumped after the data, as market players stepped up bets the BOJ would raise short-term interest rates from the current 0.25% at its next policy meeting in Dec. The Tokyo core CPI, which excludes volatile fresh food costs, rose 2.2% in Nov from a year earlier, exceeding a median market forecast for a 2.1% gain and accelerating from a 1.8% increase in Oct. (Reuters)

India: Quarterly growth slumps to a near two-year low, well below expectations. India's economy expanded by just 5.4% in its second fiscal quarter ending Sept, well below estimates by economists and close to a two-year low. The print follows 6.7% growth over the previous quarter and is the lowest reading since the last quarter of 2022. Economists had forecast growth of 6.5% for the period, while the RBI expected an expansion of 7%. The country's statistics agency noted sluggish growth in manufacturing and the mining sector. The weak GDP reading could potentially affect the country's interest rate trajectory. (CNBC)

Australia: Manufacturing PMI improves to 49.4 in Nov. The manufacturing sector in Australia continued to contract in Nov, albeit at a slower pace, the latest survey from S&P Global revealed with a manufacturing PMI score of 49.4. That's up from 47.3 in Oct, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Manufacturing production remained in contraction midway through the final quarter of the year on the back of slower new work inflows. Nov marked two complete years of sustained declines in output and new orders. (RTT)

Markets

Hextar Industries: Gets exclusive rights to bring in Luckin Coffee chain. Hextar Industries said it has signed an agreement to bring in Chinese coffee house chain Luckin Coffee to Malaysian shores. The company will have the exclusive rights to develop, open, and operate coffee shops under the Luckin Coffee brand nationwide in Malaysia, Hextar said in an exchange filing. The rights would be for 10 years, with possible renewal for two successive five-year terms.The company plans to expand Luckin Coffee aggressively across the country, Datuk Eddie Ong Choo Meng, a major shareholder of Hextar Industries, said in a statement. "We have equally ambitious plans for Luckin Coffee in Malaysia, inspired by the brand's tremendous growth," he said. (The Edge)

IGB: Pays 12sen dividend for FY2024, including a five-sen special, as 3Q profit jumps 27%. IGB has declared a dividend payout of 12sen per share for FY2024, comprising an interim dividend of seven sen and a special dividen of five sen as its latest third quarter net profit jumped 27% from the corresponding quarter last year, driven by higher contributions from its retail, commercial and hotel segments. Net profit for the third quarter ended Sept 30, 2024 (3Q FY2024) rose to RM73.7m from RM58.0m in 3Q FY2023, as revenue grew 6% to RM419.3m from RM395.1m, largely driven by its hotel business where topline climbed 34% to RM92.4m, thanks to higher occupancy and room rates. (The Edge)

Takaful Malaysia: Posts higher 3Q net profit of RM100.65m. Syarikat Takaful Malaysia Keluarga has posted a higher net profit of RM100.7m in the third quarter ended 3Q 2024 compared to RM91.1m in the same period last year. The insurer said revenue improved to RM1.1bn from RM919.5m previously. For the first nine months of its financial year ending 9M FY2024, its net profit grew to RM296.1m compared to RM276.6m a year ago, mainly attributable to the higher takaful coverage and higher profit from general takaful. (New Straits Times)

Panasonic: 2Q net profit drops to three-year low on forex loss, higher material costs. Panasonic Manufacturing Malaysia reported its lowest quarterly net profit in three years, hit by a foreign exchange (forex) loss and increased raw material costs. Earnings for the second quarter ended Sept 30, 2024 (2Q FY2025) fell 92.6% to RM2.47m, from RM33.22m a year earlier, according to the group in a bourse filing. Earnings per share declined to four sen from 54sen. Panasonic recognised a forex loss of RM16.4m for the latest quarter, as opposed to a forex gain of RM600,000 in 2Q FY2024, due to the strengthening of the MYR against the USD. Earnings were also affected by increased material costs, especially for copper and aluminium, and lower sales due to a challenging environment, particularly for products with higher profit margins. (The Edge)

LBS Bina: Unlikely to hit RM1.8bn full year sales target, declares 2.6sen special dividend. LBS Bina said that it is unlikely for the group to meet its internal sales target of RM1.8bn this year, due to deferred launches caused by a lengthy approval process. The group had registered total property sales of RM1.21bn, with RM183.5m in bookings. However, with just one month remaining until the financial year ends Dec 31, 2024, the target is out of reach for the group. (The Edge)

MARKET UPDATE

The FBM KLCI might open higher today after US stocks posted solid gains as Wall Street put the finishing touches on one of its best months of the year. The S&P 500 rose 0.6% while the Dow Jones Industrial Average gained 0.4%. Both indices closed out November with their best monthly performances of the year. The Nasdaq added 0.8%. Friday was an abbreviated trading day, with stocks closing at 1 p.m. ET and the bond market an hour later. Investors were looking to see how much shoppers are willing to spend on gifts for the holidays. Black Friday unofficially kicked off the holiday shopping season, although retailers had been offering early deals for weeks. Macy's and Best Buy each gained around 2%. Apple rose 1.1%. The technology giant is hoping recently added artificial intelligence features are enough to entice consumers to treat themselves or their relatives to a new iPhone for the holidays. The Dow rose 7.5% in November, easily its best month of 2024. The S&P 500 gained 5.7% this month, driven by Tesla and other stocks that received a boost from Donald Trump's win in the presidential election. Global markets mostly fell. Tokyo's Nikkei 225 index fell 0.4% after the government reported that inflation in Tokyo, considered an indicator for national trends, was 2.6% in November, up from 1.8% last month mainly due to a surge in fresh food prices. Chinese markets advanced. Hong Kong's Hang Seng index gained 0.3%. Meanwhile, the Shanghai Composite index rose 0.9%. Gains in retailers' stocks drove market gains after a two-day meeting in Beijing focused on promoting consumption ended on Thursday. Back home, at the closing bell, the FBM KLCI slid 3.2 points or 0.2% to 1,594.29.

Source: PublicInvest Research - 2 Dec 2024