HEADLINES

Economy

US: Service sector growth slows more than expected in Nov. A report released by the Institute for Supply Management showed US service sector growth slowed by more than anticipated in the month of Nov. The ISM said its services PMI fell to 52.1 in Nov from 56.0 in Oct. While a reading above 50 still indicates growth, economists had expected the index to show a much more modest decrease to 55.5. The bigger than expected pullback by the headline index came as the business activity index slid to 53.7 in Nov from 57.2 in Oct and the new orders index slumped to 53.7 in Nov from 57.4 in Oct. (RTT)

EU: Spain's service sector grows at slowest pace since Jan. Spain's services sector grew last month but at the slowest pace since Jan, a survey showed, as the country's deadliest floods in modern history took a toll. The HCOB Spain Services PMI Business Activity Index, fell to 53.1 in Nov from 54.9 in Oct. Any reading above 50.0 indicates expansion. The decline was partly attributed to floods in the Valencia area that killed more than 200 people on Oct 29 and 30. (Reuters)

UK: Rising employment costs dent service sector growth, PMI shows. Britain's dominant services sector lost steam in Nov, although not by as much as first feared, as a looming rise in employer taxes weighed on firms' hiring plans, a survey showed. The S&P Global UK Services PMI stood at 50.8 last month, down from Oct's 52.0, the weakest since Oct 2023 and only slightly above 50 dividing line between growth and contraction. The survey showed employment in the services sector fell for a second month, although the pace of decline was less marked than in Oct. (Reuters)

UK: BoE's Bailey signals four interest rate cuts in 2025 if inflation cools. BoE Governor Andrew Bailey signalled that the UK could be on track for four interest rate cuts over the next year, if inflation continues on a downward path. Asked whether the central bank would be poised to carry out four quarter-point cuts over the coming year, if its projections of "a little bit of [inflation] persistence" come to fruition, Bailey responded, "Exactly. (CNBC)

China: Services activity expansion eases in Nov, Caixin PMI shows. China's services activity expanded at a slower pace in Nov, pressured by easing new business growth, including in exports, a private sector survey showed, as the economy braces for a rocky ride of more US tariffs under a second Trump administration. The Caixin/S&P Global services PMI, fell to 51.5 from 52.0 in Oct, but remaining above the 50-mark that separates expansion from contraction on a monthly basis. That aligns with the official PMI released, which showed non-manufacturing activity weakened to 50.0. (Reuters)

Japan: Service activity perks up as demand improves, PMI shows. Japan's service activity swung back to growth in Nov as improving demand supported new business, a private sector survey showed. The final au Jibun Bank Service PMI rose to 50.5 in Nov from 49.7 in Oct, according to the survey compiled by the S&P Global Market Intelligence. It was slightly higher than a flash reading of 50.2 and rose above the 50.0 threshold separating expansion from contraction. (Reuters)

India: Services growth remains strong in Nov. India's services activity continued to expand strongly in Nov amid record job creation and solid demand conditions, final data from S&P Global showed. The HSBC final services PMI registered 58.4 in Nov, down slightly from 58.5 in Oct. Total sales grew at a slower pace compared to Oct, while export orders rose at the quickest pace in three months, linked to more demand from clients in Asia, Europe, Latin America, and the US. (RTT)

Australia: Economic growth remains sluggish. Australia's economic growth remained sluggish last quarter as a surge in government spending underpinned the expansion, highlighting the central bank's policy challenge as inflation is still stubbornly sticky. GDP rose 0.8% from a year earlier, the weakest reading, excluding the pandemic, since Dec 1991, when the economy was mired in recession, official data showed. (The Star)

Markets

Binasat: Plans private placement to finance property acquisitions. Binasat Communications has proposed to undertake a private placement to finance the acquisition of several properties. The company said the acquisitions include three commercial properties within the Sazean Business Park in Kota Bayuemas, Klang, for RM8.3m. Binasat has also entered into an agreement to acquire 241 units of fully furnished proposed hotel suites in Empire City, Damansara Perdana, for RM73.5m. (The Edge)

DC Healthcare: Expands with new Dr. Chong Clinic in Penang. DC Healthcare Holdings has expanded its presence in Northern Malaysia with the opening of a new Dr. Chong Clinic in George Town, Penang. The clinic, equipped with advanced medical technology and staffed by skilled professionals, aims to meet the growing demand for medical aesthetic services in the region, catering to both local and international clients. The expansion is part of DC Healthcare's strategy to increase its footprint across Malaysia, particularly in the Northern and Southern regions. The group now operates 18 medical aesthetic clinics, including a new skin and wellness center and four DC Body outlets. (The Malaysian Reserve)

Mulpha International: Buys Aussie property for RM197.0m. Mulpha International (MIB) unit, Mulpha Marymount, is acquiring the Marymount Mercy Centre from the Trustees of the Sisters of Mercy in New South Wales, Australia, for RM196.8m. MIB said the acquisition will expand its development pipeline, which will deliver additional income streams. "The proposed acquisition is expected to enhance the group's property development business in view of its strategic location and the substantial redevelopment opportunity that it provides." MIB said the property is located within the prime residential area of Castle Hill, nearby to schools, Castle Towers Shopping Centre, Castle Hill and Cherrybrook metro stations. (StarBiz)

Apollo Food: Declares 30 sen dividend, net profit up 6.7% in 2QFY2025. Apollo Food Holdings net profit grew 6.7% YoY for the Q2, supported by higher domestic and export sales. The company announced that its net profit came in higher at RM10.6m for the Q2 ended 31 Oct 2024 (2QFY2025), against RM10.0m a year ago. Revenue expanded 17.25% to RM77.3m during the quarter under review, from RM66.0m last year, mainly due to the increase in export sales, its bourse filing showed. Earnings per share increased to 13.3 sen from 12.4 sen a year before. The group, which is in a net cash position, declared a dividend of 30 sen for the quarter under review, payable on 31 Dec. (The Edge)

Superlon: 2Q profit fell 12.4% due to forex losses, declares 2 sen dividend. Superlon Holdings net profit for the Q2 ended 31 Oct 2024 (2Q2025) fell 12.4% to RM3.2m from RM3.7m, due to higher foreign exchange losses. Despite this, the company's revenue increased 15.2% to RM33.4m, driven by stronger sales in its manufacturing and trading segments. The company declared a second interim dividend of 0.75 sen per share and a special dividend of 1.25 sen per share, totaling 2 sen, payable on 30 Dec 2024. For the first half of FY2025, net profit grew 19.3% to RM7.2m, with revenue up 24.6% to RM70.8m. (The Malaysian Reserve)

MARKET UPDATE

US markets broke new highs overnight as confidence from strong earnings reports continued to steamroll any scant signs of resistance. The Dow Jones Industrial Average closed above 45,000 points for the first time ever at 45,014.04, a gain of 0.7% on the day. Technology-based shares came to the fore, leading the Nasdaq Composite 1.3% higher to 19,732.12-pts as the S&P 500 rose 0.6% to close at 6,086.49. Investors are now awaiting new US employment data due on Friday, with expectation of the economy adding 214,000 jobs in November. This data could give investors insight into the Federal Reserve's next policy moves, though markets showed little reaction after US Federal Reserve Chair Jerome Powell said the economy was strong enough for the central bank to proceed cautiously on rate cuts. Over in Europe, markets also closed higher despite the ongoing political turmoil in France. Later in the evening lawmakers passed a vote of no-confidence on the Prime Minister's, plunging the country into further chaos. The CAC 40's overnight 0.7% gain is likely to reverse when markets there reopen later today. Elsewhere, Germany's DAX rose 1.1% though UK's FTSE 100 slipped 0.3%. On a separate note, Bank of England's Governor hinted that the central bank was poised to carry out four interest rate cuts in 2025. Politics also dominated headlines in Asia, with South Korea's KOSPI slumping 1.4% after a coalition of lawmakers from the country's opposition parties put forward a bill to impeach the President who, earlier in the day, imposed and then lifted a martial law decree within hours. The Nikkei 225 (+0.07%) and Hang Seng Index (-0.02%) were largely flat on the day, as the Shanghai Composite Index fell a more notable 0.4%. The KLCI added 0.4% to close at 1,614.09 points meanwhile.

Source: PublicInvest Research - 5 Dec 2024