Market Review

The FBM KLCI tumbled for the third consecutive day on Thursday closing at 1,588.7 (-0.6%) , weighed down by losses in TENAGA, YTL Power and YTL Corp, amid weaker regional markets. Among the index constituents, YTL (-6.6%), YTLPOWER (-5.4%) and TENAGA (-3.5%) were the top 3 decliners. Among the sector, the top 3 decliners were led by Plantation (- 1.4%), Utilities (-1.8%) and Construction (-1.5%). In summary, the overall broader market breadth remained negative, with 675 losers outnumbering 461 gainers.

Economics

China: Finds US$83bn worth of gold reserves in Hunan

China has found gold reserves worth 600bn yuan (US$82.9bn or RM370.9bn) in central Hunan province, state outlet Xinhua news said on Thursday. China is the world's largest gold producer, accounting for around 10% of global output in 2023, data from the World Gold Council showed. It consumed 741.7 metric tons of gold in the first three quarters of this year while output was 268.1 tones, meaning it must rely on imports to meet domestic demand. Hunan Academy of Geology found more than 40 gold ore veins at a depth of more than 2,000 meters in Pingjiang county, with a total of 300.2 tons of gold resources discovered in the core exploration area and a highest grade of 138 grams per metric tons. (Reuters)

Japan: Ishiba set to announce US$140bn stimulus package

Japanese Prime Minister Shigeru Ishiba is set to unveil a US$140bn (RM626.3bn) economic stimulus package to address a range of challenges from inflation to wage growth, following his election promises to alleviate a cost-of-living crunch. The package will add up to ¥21.9tn, according to public broadcaster NHK, a fraction larger than last year's array of measures. The package will include ¥13.9tn of spending from the general account, NHK said. Together with private sector spending, the impact of the package overall is expected to be around ¥39tn, the report said. The proposed plan is expected to be approved by the cabinet Friday, following Ishiba's return from South America where he attended a series of summit meetings. The compiling of the package with an extra budget to follow are an important test of Ishiba's ability to proceed with policy now that his ruling coalition only has a minority in parliament. (Bloomberg)

Malaysia: BNM reschedules govt bond auction, scraps one issue in unusual move

Malaysia's central bank made two unusual changes to the government bond auction calendar by rescheduling a tender set for this month and scrapping another penciled in for December. A reopening of 10-year Malaysian Government Securities has been moved to December, from November, while a three- year Government Investment Issues auction, previously set for the final month of 2024, has been removed from the calendar on Bank Negara Malaysia's (BNM) website. "Rescheduling of auction happened before but this is the first time for cancellation, as far as we are aware," said Maybank Investment Bank analyst Winson Phoon. "This means only one auction left for the year, instead of two." In a reopening, the Malaysian government sells additional amounts of a previously issued bond, which enlarges the size of the outstanding issue. The new paper carries the same maturity date and coupon. (The Edge)

Companies

Globetronics: Secures RM145m contract to provide assembly to Taiwan's ChipMOS

Globetronics Technology Bhd has inked an agreement valued at RM145m to provide integrated circuit (IC) product packaging, testing and backend services to Taiwan-based ChipMOS Technologies Inc. Under the services agreement, Globetronics is to provide dicing, packaging, and testing services for IC products delivered by ChipMOS, according to the outsourced semiconductor assembly and test (OSAT) outfit's statement on Thursday. The contract is to span three years from Nov 21, 2024, to Nov 20, 2027. The contract's value of RM145m is based on a volume forecast provided by ChipMOS, Globetronics notes. (The Edge)

Maxin Global: Gives up plantation concession permits in Indonesia

After two years, property developer Maxim Global Bhd has decided not to pursue further action against the revocation of plantation concession licenses issued by Indonesia's Ministry of Environment and Forestry in January 2022 in relation to assets owned by its 90%-owned subsidiaries - PT Trimegah Karya Utama (PT TKU) and PT Manunggal Sukses Mandiri (PT MSM) - in Papua, Indonesia. This follows the decision on Oct 2 this year by the Indonesia Investment Coordinating Board to revoke the concession licences held by PT TKU and PT MSM despite their appeal since 2022 and the related litigation against the Boven Digoel Regency in Papua in relation to the revocation. Additionally, no outcome was received from the president of Indonesia to reconsider the revocation of the concession licences. (The Edge)

Petronas Dagangan: Perodua teams up with PETRONAS Dagangan and Gentari

Perodua Sales Sdn Bhd has inked two memoranda of understanding (MoUs) with Petronas Dagangan Bhd and Gentari Sdn Bhd subsidiaries to enhance the retail experience for its customers through the integration of various services. In a joint statement, they said the first MoU, signed between Perodua Sales and Petronas Dagangan's subsidiaries Petronas Lubricants Marketing Sdn Bhd, Mesra Retail & Cafe Sdn Bhd, and Setel Ventures Sdn Bhd, will provide Perodua customers access to new services at its service centres. This includes the integration of Setel's seamless digital payment feature into Perodua's UFirst app, the establishment of Mesra for added convenience, and the set-up of Perodua service centers at selected Petronas stations. (The Star)

Atlan: Home Affairs Ministry pays Atlan RM69.6m for compulsory purchase of its Kedah plot

Atlan Holdings Bhd's Singapore-listed subsidiary Duty Free International Ltd (DFIL), which plans to challenge the compulsory acquisition of two plots of land in Kedah by the Malaysian government, announced on Thursday that it had received RM69.6m as compensation for the land. The sum was received from the Home Affairs Ministry, which is force-buying the plot from DFIL's wholly owned Cergasjaya Sdn Bhd and Cergasjaya Properties Sdn Bhd, on Monday (Nov 18). DFIL itself is 75.5% owned by Atlan. DFIL had previously said in a bourse filing with the Singapore Exchange that it would accept the award of the compensation under protest as it is not satisfied with it, and that it would file an objection by way of a land reference to the High Court. The company is still in the process of filing an objection by way of a land reference to the High Court in accordance with the Land Acquisition Act 1960 of Malaysia, DFIL said in its latest filing on Thursday. (The Edge)

Source: Mercury Securities Research - 22 Nov 2024