HEADLINES

Economy

US: Pending home sales surge to highest level since Feb 2023. A report released by the National Association of Realtors showed pending home sales in the US surged by much more than expected in the month of Nov. NAR said its pending home sales index shot up by 2.2% to 79.0 in Nov after jumping by 1.8% to 77.3 in Oct. Economists had expected pending home sales to climb by 0.7%. (RTT)

EU: Spanish inflation picks up again, backing gradual ECB rate cuts. Spanish inflation quickened more than anticipated this month, staying above 2% for a second month on base effects and supporting the case for gradual interest-rate cuts. Consumer prices advanced 2.8% from a year ago in Dec, according to national statistics agency data published. Consumer prices advanced 2.8% from a year ago in Dec, according to national statistics agency data published. That compares with 2.4% in Nov and is stronger than the 2.6% median estimate in a Bloomberg survey of economists. (The Edge)

China: Dec manufacturing activity seen expanding for third month. China's factory activity likely expanded for a third straight month in Dec, offering a glimmer of optimism to officials trying to steady the world's No. 2 economy as they brace for further US trade tariffs under a second Trump administration. A Reuters poll of 28 economists forecast the official PMI would remain at 50.3, matching Nov's reading and staying above the 50-point threshold that separates growth from contraction in activity. (Reuters)

Japan: Factory activity shrinks at slower pace, PMI shows. Japan's factory activity shrank at a slower pace in Dec as declines in production and new orders eased, a private-sector survey showed, edging closer to stabilisation after recent falls. The final au Jibun Bank Japan manufacturing PMI rose to 49.6 in Dec, indicating the softest contraction in three months. (Reuters)

India: Banks' gross bad loan ratio may edge up by March 2026, central bank report says. Indian banks' gross bad loan ratio may rise from a 12-year low if risks emanating from credit quality, interest rates and geopolitics play out, a report published by the central bank showed. Gross bad loan ratio is the proportion of bad assets to total loans. This key measure could rise to 3% by the end of March 2026 from a 12-year low of 2.6% in Sept 2024 for 46 banks under the so-called baseline scenario, the Reserve Bank of India said in the Financial Stability Report. (Reuters)

South Korea: Inflation rises 2.3% In 2024. Consumer prices in South Korea were up 2.3% on year in 2024, Statistics Korea said, moderating from 2.5% in the previous year. For Dec, inflation rose 0.4% on month versus expectations for an increase of 0.2% following the 0.3% contraction in Nov. On a yearly basis, consumer prices rose 1.9% exceeding expectations for 1.7% and up from 1.5% a month earlier. (RTT)

Hong Kong: Trade gap widens in Nov. Hong Kong's foreign trade deficit increased notably in Nov from a year ago as imports grew faster than exports, data from the Census and Statistics Department showed. The trade gap rose to HKD43.4bn in Nov from HKD27.9bn in the same month last year. The trade shortfall also rose from HKD31.0bn in Oct. (RTT)

Markets

TT Vision: Secures contract worth approximately RM8.74m. TT Vision Holdings' (TTVHB) wholly-owned subsidiary, TT Vision Technologies SV (TT Vision) has accepted a purchase order for its machine vision equipment from a major customer, for a contract value of USD1.95m or approximately RM8.74m. TTVHB said the contract is expected to be fulfilled within six months. "The contract will not have any effect on the share capital and substantial shareholders' shareholdings of the group and it subsidiaries. (Bernama)

Malaysia Airports: Settles RM456m arbitration dispute with KAFS. Malaysia Airports Holdings Bhd (MAHB) has reached a settlement with Kuala Lumpur Aviation Fuelling System SB (KAFS) concerning a long-running arbitration dispute. The dispute, which dates back to 2015, involved KAFS's claim for RM456m in damages following a reduction in the concession tenure under the airport facilities agreement (AFA) signed in 2007. The dispute arose after changes in an operating agreement between MAHB's subsidiary, Malaysia Airports (Sepang) SB (MA Sepang), and the Malaysian government in 2009, which shortened the concession period from 50 years to 25 years.. (The Malaysian Reserve)

Samaiden: Shortlisted for 99.99MW large scale solar plant in Pasir Mas, Kelantan. Samaiden Group's (Samaiden) subsidiary, Samaiden SB (SSB) has been shortlisted by the Energy Commission for the development of a 99.99MW Large Scale Solar Photovoltaic Plant (LSS Plant) in Pasir Mas, Kelantan. "The achievement underscores Samaiden's continuous commitment to advancing Malaysia's renewable energy (RE) sector and supporting the nation's energy transition goals," the company said. SSB was awarded the Package 3 contract (30 MW to 500 MW category) based on its competitive proposal and adherence to the request for proposal (RFP) requirements. (Business Times)

YNH Property: Inks land disposal deals in Perak valued at RM63.5m. YNH Property's wholly-owned subsidiaries have inked deals valued at a combined RM63.5m over the last 12 months for the disposal of lands in Perak. The group said its units, namely Hotel Sfera SB, Kar Sin and Mesra Unggul SB entered into five separate sales and purchase agreements for the disposal of tracts of land in Lumut and Sayung in Perak. The purchasers of the land include Kmart SB, Provigo SB and Invesco Asset SB. The group is expected to record a pro forma net gain of about RM23.96m. The group plans to utilise the proceeds of the disposal for the repayment of outstanding loans and working capital. (The Star)

Yinson: Secures RM161.8m bareboat charter extension for FPSO unit. Yinson Production, the offshore business arm of Yinson Holdings, has secured an 18-month extension for the bareboat charter contract of its floating production storage and offloading (FPSO) unit operating in offshore Vietnam. The FPSO PTSC Lam Son - jointly owned by Yinson Production (49%) and PetroVietnam Technical Services Corporation (PTSC) (51%) through their joint venture, PTSC Asia Pacific Pte Ltd - has been operating for PetroVietnam in Block 1-2/97 offshore Vietnam since 2014. Yinson said the extension is from 1 Jan 2025 to 30 June 2026, with an automatic six-month extension until 31 Dec 2026, subject to certain conditions. The contract value, including the automatic extension period, is estimated at USD36.2m (RM161.8m), of which about USD17.7m is attributable to Yinson Production. (The Edge)

MARKET UPDATE

The KLCI might open lower today after US stocks closed broadly lower Monday as a banner year on Wall Street looked set to finish on a sour note. The S&P 500 fell 1.1%, its third straight decline. Roughly 90% of stocks within the index lost ground. On the second-to-last day of 2024, the benchmark index was still on track for its second straight yearly gain of more than 20%. The Dow Jones Industrial Average fell 1%, and the Nasdaq composite ended 1.2% lower. Indices in Europe and Asia mostly fell. Markets are nearing the close of a stellar year driven by a growing economy, solid consumer spending and a strong jobs market. Wall Street expects companies within the S&P 500 to report broad earnings growth of more than 9% for the year. The final figures will be tallied following fourth-quarter reports that start in a few weeks. Wall Street was encouraged by cooling inflation throughout the year that had brought the rate of inflation close to the Federal Reserve's 2% target. That raised hopes that the central bank would deliver a steady stream of interest rate cuts, which would ease borrowing costs and fuel more economic growth. Markets will be closed on Wednesday. On Thursday, investors will get an updated snapshot of US construction spending for the month of November. On Friday, Wall Street will receive an update on manufacturing for December. Back home, the KLCI added 9.54 points or 0.59% to 1637.68.

Source: PublicInvest Research - 31 Dec 2024