HEADLINES

Economy

US: Factory orders pull back slightly more than expected in Nov. A report released by the Commerce Department showed new orders for US manufactured goods decreased by slightly more than expected in the month of Nov. The Commerce Department said factory orders fell by 0.4% in Nov after climbing by an upwardly revised 0.5% in Oct. Economists had expected factory orders to dip by 0.3% compared to the 0.2% uptick originally reported for the previous month. The pullback by factory orders came as orders for durable goods slumped by 1.2%, more than offsetting a 0.4% increase by orders for non-durable goods. Meanwhile, the report said shipments of manufactured goods inched up by 0.1% in Nov after slipping by 0.2% in Oct. Inventories of manufactured goods also rose by 0.3% in Nov after edging down by 0.1% in the previous month. (RTT)

EU: German inflation rises more than expected in Dec. German annual inflation rose more than forecast in Dec due to higher food prices and a smaller drop in energy prices than in previous months, preliminary data from the federal statistics office showed. The annual CPI rate rose to 2.9%, higher than the 2.6% forecast by analysts polled by Reuters and speeding up from 2.4% in Nov, based on data harmonised to compare with other European Union countries. Economists pay close attention to national inflation data, as Germany publishes its figures one day before the euro zone inflation data release. This week's inflation data will be the last before the ECB's next meeting on Jan. 30. Euro zone inflation is expected to have risen to 2.4% in Dec from 2.2% in Nov. (Reuters)

EU: Portugal jobless rate rises to 6.7%. Portugal's unemployment rate increased slightly in Nov after remaining steady in the previous month, preliminary figures from Statistics Portugal showed. The seasonally adjusted jobless rate rose to 6.7% in Nov from 6.6% in Oct. In the corresponding month last year, the unemployment rate was 6.5%. There were 363,800 unemployed people in Nov, up from 362,800 in the previous month. The youth unemployment rate, which applies to the 16 to 24 age group, declined to 21.5% in Nov from 22.1 in Oct. The employment rate came in at 64.2% in Nov, down slightly from 64.3% in the preceding month. (RTT)

UK: Car registrations rise 2.6% in 2024. UK car sales grew for the second successive year in 2024 with record market share of electric vehicles but lackluster private demand a concern, data from the Society of Motor Manufacturers & Traders (SMMT) showed. Car registrations grew by 2.6% to 1.953m in 2024, up from 1.903m in 2023. During Dec, car sales showed a marginal decline of 0.2%, capping off a challenging year for the sector as manufacturers strove to create demand for electric vehicles in a bid to meet new mandated sales targets, the SMMT said. (RTT)

UK: Business sentiment lowest since late 2022. UK business sentiment deteriorated the most since the aftermath of the mini budget in late 2022, as firms became more concerned about taxation following the Chancellor's autumn statement, the latest quarterly survey from the British Chambers of Commerce showed. The Quarterly Economic Survey showed that only 49% of firms expect their turnover to increase over the next twelve months, down from 56% in the third quarter. (RTT)

China: Service sector logs fastest growth in 7 months. China's service sector grew at the fastest pace in seven months in Dec underpinned by greater business inflows, survey results from S&P Global showed. The services PMI posted 52.2 in Dec, up from 51.5 in Nov. The score was forecast to climb to 51.7. The services activity extended its expansion to two years. Moreover, activity growth accelerated the most since May. Incoming new work grew at the fastest pace in five months on the back of promotional efforts and better underlying demand. (RTT)

India: Services growth strongest in 4 months. India's services activity expanded at an accelerated pace at the end of the year, spurred by buoyant demand conditions, final data from S&P Global showed. The HSBC final services PMI climbed to 59.3 in Dec from 58.4 in the previous month. A reading above 50 indicates expansion in the sector. The flash score was 60.8. New orders grew at the quickest pace in four months amid strong demand environment. (RTT)

Markets

Keyfield: Acquires platform supply vessel for USD17.6m. Oil and gas services firm Keyfield International is acquiring a five-year-old platform supply vessel for USD17.6m (RM79.2m), funded through proceeds from the company's sukuk issuance and an additional USD2m from internal funds for capex. The vessel, to be renamed Keyfield Gratitude, will be deployed in Keyfield's vessel chartering business for transporting materials and equipment between shore and offshore platforms. (The Malaysian Reserve)

Kumpulan Kitacon: Bags RM66m residential construction job. Kumpulan Kitacon (KKB) has accepted an LoA from KL-Kepong Country Homes SB for main building works to a residential project at Bandar Seri Coalfields, Selangor, worth RM65.68m. KKB said the contract will consist of the construction and completion of single and double storey bungalow homes. "The contract shall commence on Feb 3, 2025 and is to be completed within 20 months from the commencement date." (Starbiz)

T7 Global: Secures maintenance, construction and modification services contract. Offshore oil and gas services provider T7 Global announced it has bagged a contract to undertake maintenance, construction and modification (MCM) services for an undisclosed value. The contract was awarded to its wholly-owned subsidiary, Tanjung Offshore Services SB, by Carigali Hess Operating Company SB. The contract, dated Dec 19, 2024, will commence on Jan 15, 2025, for an initial duration of three years, with an option to extend for an additional two years. (The Edge)

Aizo Group: Shortlisted to develop 99.99 MW LSS plant in Perak. Aizo Group has been shortlisted to develop a 99.99 megawatts (MW) large-scale solar (LSS) plant in Kampar, Perak. The company said Wawasan Demi SB (WDSB), a 63% owned subsidiary of Coral Energy SB, which in turn is a wholly-owned subsidiary of Aizo, had been awarded a letter of notification from the Energy Commission for the LSS project. Aizo said the project would be subjected to WDSB satisfying certain obligations, compliance, including submission and execution of the LSS project documents to confirm the acceptance. (StarBiz)

Handal Energy: Terminates JV with Kazakhstan's Hadid Oil & Gas. Handal Energy has today announced the termination of JV agreement with Kazakhstan-based Hadid Oil & Gas LLP (HAG). The JV, formed between Handal's wholly owned subsidiary, Handal Floaters SB (HFLSB), and HAG, was terminated due to the non-fulfilment of one of the conditions precedent outlined in the JV agreement. The company informed the bourse today that the termination is not expected to have any material impact on Handal's earnings, net assets, or gearing for the financial year ending June 30, 2025. (The Malaysian Reserve)

Citaglobal: Acquires 55% stake in waste-to-energy partner LAWI Germany for undisclosed value. Citaglobal has acquired a 55% equity stake in Germany's LAWI Engineering GmbH (LAWI Germany), as part of a partnership to provide advanced waste-to-energy technology and engineering solutions for waste management projects. The acquisition, fully paid on Jan 3, 2025, involves the subscription to 31,778 new ordinary shares in LAWI Germany via Citaglobal's wholly owned subsidiary, Citaglobal Environment Management SB (CGEM). (The Edge)

MARKET UPDATE

The KLCI might open higher today after rising technology stocks on Monday helped US indices recover some more of their holiday-season slide that bridged the new year. The S&P 500 added 0.6% for a second straight gain following five straight losses, its longest losing streak since April. The Dow Jones Industrial Average lost an early gain to slip 25 points, or 0.1%, and the Nasdaq composite gained 1.2%. Slightly more stocks fell in the S&P 500 than rose amid the mixed trading. Tech companies were the clear leaders, including those swept up in the frenzy around artificial-intelligence technology. Nvidia climbed 3.4% to top its record set in November ahead of a speech by CEO Jensen Huang at the annual CES convention in Las Vegas after trading ended for the day. Nvidia and other AI stocks keep climbing even as criticism rises that their stock prices have already shot too high, too fast. Despite worries about a potential bubble, the industry continues to talk up its potential. This upcoming week will have one fewer day of trading than usual. The New York Stock Exchange and Nasdaq will close their stock and options markets on Thursday in observance of a National Day of Mourning for former President Jimmy Carter. But the calendar is nevertheless packed with potentially market-moving events. Tuesday will deliver the latest updates on monthly job openings advertised by US employers and on the health of businesses in the services industries. On Wednesday, the Federal Reserve will release the minutes from its last policy meeting, where it cut its main interest rate for a third straight time but hinted fewer reductions may arrive in 2025. Friday will bring the week's headliner: the monthly jobs report, along with an update on how US consumers are feeling. In stock markets elsewhere, indices were mixed across Europe and Asia. France's CAC 40 jumped 2.2%, while Japan's Nikkei 225 slumped 1.5%. Back home, the KLCI dropped 3.99 points or 0.24% to 1625.47.

Source: PublicInvest Research - 7 Jan 2025