PublicInvest Research

PublicInvest Research Headlines - 10 Jan 2025

PublicInvest
Publish date: Fri, 10 Jan 2025, 09:08 AM
PublicInvest
0 11,487
An official blog in I3investor to publish research reports provided by PublicInvest Research team.

All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to: https://www.publicinvestbank.com.my/pbswecos/default.asp

PUBLIC INVESTMENT BANK BERHAD (20027-W)
9th Floor, Bangunan Public Bank
6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur
T 603 2031 3011 | F 603 2272 3704 | Dealing Line 603 2260 6718

HEADLINES

Economy

US: Companies announced fewest hires in 2024 in nearly a decade. US companies pared back hiring plans in 2024 as employers announced the smallest additions to headcount in almost a decade. Monthly data from Challenger, Gray & Christmas showed firms announced plans to hire 769,953 workers last year, the least since 2015. Job cuts also picked up, with employers planning to eliminate 761,358 positions, a 5.5% increase from 2023. Report builds on recent data showing moderating labor demand as businesses remain cautious ahead of Jan's changeover in the White House. (Bloomberg)

EU: Hungarian industrial output falls further, retail sales growth improves. Hungary's industrial production declined for the ninth straight month in Nov, preliminary figures from the Hungarian Central Statistical Office showed. Separate official data showed that retail sales expanded at an accelerated pace in Nov. The volume of industrial production dropped a working-day-adjusted 2.9% yearly in Nov, following a 3.1% fall a month ago. Production volume fell in the great majority of the manufacturing subsections, while it grew in three segments, with the highest rate in the manufacture of coke and refined petroleum products, the agency said. On a monthly basis, industrial production slid 1.6% in Nov, reversing a 2.0% rebound in the previous month. (RTT)

EU: Czech jobless rate rises to 4.1%. The Czech Republic's unemployment rate increased for the second straight month in Dec, figures from the labor office showed. The unemployment rate came in at 4.1% in Dec, up from 3.9 in the previous month. In the corresponding month last year, the jobless rate was 3.7%. There were 306,500 unemployed people in Dec, compared to 290,400 a month ago. The labor office reported that by the end of Sept, job offices had registered a total of 246,573 vacancies, down from 255,641 in the preceding month. (RTT)

EU: German industrial production jumps 1.5% MoM in Nov vs. 0.5% expected. Germany's industrial sector staged a turnaround in Nov, according to the latest data published by Destatis. In the Eurozone's economic powerhouse, industrial output jumped by 1.5% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, against the estimated 0.5% rebound and a 1.0% drop in Oct. German Industrial Production fell by 2.8% YoY in Nov versus October's -4.2% revision. (FXStreet)

UK: Bond market selloff heaps pressure on Reeves. Rachel Reeves is facing her first major test as Britain's finance minister after the government's borrowing costs climbed for a third day on Thurs and the pound's losses deepened, potentially forcing her to cut future spending. The Treasury said that it would maintain an iron grip on the public finances after a selloff in debt markets that pushed the yield on 30-year British government bonds to a 26-year high. Gilt yields rose again on Thurs, albeit less sharply than over the previous two sessions, and the pound was headed for its biggest three-day drop in nearly two years. (Reuters)

Japan: Nov real wages fall for 4th straight month as inflation weighs. Japan's inflation-adjusted real wages fell for the fourth straight month in Nov weighed down by higher prices even as base pay grew at the fastest pace in more than three decades, government data showed. The BoJ considers various risks in deciding the timing for raising interest rates and the central bank has repeatedly said sustained, broad-based wage hikes are a prerequisite for pushing up borrowing costs. Inflation-adjusted real wages, a barometer of consumer purchasing power, slipped 0.3% in Nov from a year earlier, falling for the fourth straight month, data from the labour ministry showed. (Reuters)

Thailand: Thai central bank rebuffs demand for steps to boost inflation. Thailand's central bank is comfortable with the outlook for subdued inflation as it focuses the monetary policy to ensure financial stability and economic growth amid rising uncertainties. Adopting a government suggestion to target inflation at 2% instead of maintaining a 1%-3% target band may be inappropriate, as prices in Thailand are largely influenced by external factors. (Bloomberg)

Philippine: Central bank has room to further ease policy, governor says. The Philippine central bank has room to ease monetary policy, its governor said, following this week's data showing annual inflation stayed within its 2% to 4% target range in 2024. The Philippines reached its 2% to 4% inflation target for the first time since 2021 last year, even as the pace of consumer price increases quickened for a third straight month in Dec to 2.9%, above economists' expectations. Remolona said uncertainties concerning US President-elect Donald Trump's trade policies pose challenges to inflation. (Reuters)

Markets

Dialog Group (Neutral, TP: RM2.12): Secures USD235m final investment decision for Baram Junior Cluster Small Field Asset PSC. Dialog Group announced that it has secured the final investment decision for the field development and abandonment plan under the Baram Junior Cluster Small Field Asset Production Sharing Contract (PSC), amounting to USD235m (RM1bn). The PSC agreement signed in Jan 2023 involves Dialog Resources SB, a wholly owned subsidiary of Dialog Group, holding a 70% participating interest, while Petroleum Sarawak Exploration and Production SB (PSEP), a subsidiary of the Sarawak government, holds the remaining 30% in the PSC. (The Edge) Comment: After 2-years of pre-development phase, the PSC is now entering 2-years development phase and subsequently will enter into production phase for 10 years. We are positive with this development as management guided that the field would provide 10-12% IRR with 50-60% debt financing. However, the management not provided further details such as reserve and production profile assumptions and breakeven operating expenditure per production. Hence, we make no changes on our forecast at this juncture. We maintain our Neutral call and TP of RM2.12.

T7 Global: Secures Hibiscus job. T7 Global, via its wholly owned subsidiary Tanjung Offshore Services SB, has secured a contract from Hibiscus Oil & Gas Malaysia Ltd for the provision of maintenance, construction and modification services. The group said the contract for the PM3-CAA oil field would run for six months from Dec 19, 2024, with an option to extend for another six months, exercisable at Hibiscus Oil & Gas' discretion. The board envisaged that the award would contribute positively to the earnings and net assets of the company for the financial year ended Dec 31, 2024, and onwards until the expiry of the contract. (StarBiz)

Parkson: Inks 10-year lease deal in Guizhou, China. Parkson Holdings announced that its unit, Liupanshui Parkson Retail Co Ltd, has signed a 10-year tenancy agreement for its department store operations in the city of Liupanshui, Guizhou province, China. Parkson said the tenancy agreement was entered into with Guizhou Hanhua Real Estate Development Co Ltd to occupy 26,723 square metres of space in the Baolong International Building. The tenancy is set to commence on Jan 1, 2027 and expire on Dec 31, 2036. (The Edge)

SWA Shipping: Faces Feb 25 deadline for RM123m Pos Logistics deal. SWA Shipping SB has until Feb 25, 2025, to meet its obligations under a RM123.2m SPA with Pos Logistics, a subsidiary of Pos Malaysia. Failure to comply by the deadline could result in the termination of the deal and forfeiture of the deposit. Pos Malaysia stated that Pos Logistics issued a notice requiring SWA Shipping to resolve the non-fulfillment within 30 business days, ending on Feb 25. (The Malaysian Reserve)

Green Packet: Gets digital lending license. Green Packet has announced that its wholly owned subsidiary, Packet Interactive SB, has successfully secured a digital lending license from the Ministry of Housing and Local Government, effective from Jan 9, 2025. The license, valid for the same period as its existing money lending license (Aug 15, 2024 to Aug 14, 2026), will allow Packet Interactive to expand its financial product offerings. (The Malaysian Reserve)

MARKET UPDATE

The KLCI might open flat today after world shares were mixed on Thursday as the US stock market remained closed to observe a National Day of Mourning for former President Jimmy Carter. London's FTSE 100 climbed 0.8% to 8,319.69 as the value of the British pound slid against the US dollar amid worries about the United Kingdom's economy and its government's finances. A weaker pound can boost profits for UK exporters, which can goose their stock prices. Germany's DAX lost 0.1% to 20,317.10, and France's CAC 40 added 0.5% to 7,490.28. In Asia, markets mostly declined as caution revived over a likely deepening of trade friction once President-elect Donald Trump takes office. Shares fell in Tokyo after Japan reported strong wage growth for November, data that might help persuade its central bank to raise interest rates. The Nikkei 225 index dropped 0.9% to 39,605.09. Hong Kong's Hang Seng index edged 0.2% lower, to 19,240.89, while the Shanghai Composite index lost 0.6% to 3,211.39. The government reported that the consumer price index rose 0.1% in December from a year earlier, while wholesale or producer prices dropped 2.3%, signaling that demand remains slack in the world's second-largest economy. In Australia, the S&P/ASX 200 gave up 0.2% to 8,329.20. South Korea's Kospi edged less than 0.1% higher, to 2,521.90 despite strong gains for technology companies and automakers. Taiwan's Taiex sank 1.4% and the Sensex in India was down 0.7%. In Bangkok, the SET slipped 1.8%. Back home, the KLCI lost 14.02 points or 0.87% to 1600.81.

Source: PublicInvest Research - 10 Jan 2025

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment