Market Review

The FBM KLCI ended relatively flat on Monday to 1,606.9 (-0.1%), in line with the mixed performance of regional markets. Am ng index constituents, AXIATA (+2.5%), SIME (+2.5%) and KLK (+1.2%) emerged as the top three gainers. S ctor-wise, Technology (+1.0%), Plantation (+0.3%) and Telecommunication (+0.1%) led the gains. The overall broader market breadth was negative, with 656 losers outnumbered 424 gainers.

Economics

Malaysia: With Thailand reaffirm commitment to enhance bilateral trade & investment, targeting US$30bn by 2027

Malaysia and Thailand have reaffirmed their commitment to enhance investment and bilateral trade, through the Joint Task Force on Trade and Investment, with a target of US$30bn (RM133.6bn) by 2027. Prime Minister Datuk Seri Anwar Ibrahim said that while the target may seem ambitious, the significant economic potential in both Thailand and Malaysia makes it an objective that both countries must work towards. During a joint press conference with Thailand's Prime Minister Paetongtarn Shinawatra on Monday, Anwar said the northern provinces in Malaysia need additional focus and investment, similar to the needs of the southern provinces in Thailand. (The Edge)

Malaysia: Digital investment strategy attracted RM224.7bn since 2021, created nearly 96,000 jobs

The Malaysia Digital Investment Strategy (MDIS) (formerly Digital Investments Future5 Strategy or DIF5) has attracted investments totalling RM224.7bn since its launch in 2021 until the third quarter of this year. Digital Minister Gobind Singh Deo said MDIS, implemented by his ministry through Malaysia Digital Economy Corporation (MDEC), has created 95,879 new job opportunities up to the last quarter. "The achievement reflects investors' confidence in Malaysia as an investment destination for digital technology companies," he said during the question-and-answer session in Dewan Negara on Monday. (The Edge)

UK: Britain pares back secretive China strategy review, seeking closer ties

Britain's Labour government has pared back an audit of relations with China, four sources with knowledge of the matter said, preparing the way for a less critical report that could help Prime Minister Keir Starmer focus on improving economic ties. The Labour Party said before taking power the audit would be Britain's first in-depth, potentially year-long appraisal of relations and supply chains with a country considered by the security services as the nation's biggest long-term threat. (Bloomberg)

EUR: Lagarde says ECB to cut rates further with inflation victory near

The European Central Bank (ECB) will lower borrowing costs further as the inflation spike of recent years increasingly moves into the rear-view mirror, bringing the 2% target within reach, President Christine Lagarde said. After a "lengthy period of restrictive policy," the accuracy of economic projections has improved and officials can concentrate on managing future risks instead of worrying about the transmission of past shocks, she said Monday in a speech, also citing evidence that still-elevated services inflation will ease in the coming months. Inflation has slowed significantly from its peak and even dipped below 2% earlier this year. It's since accelerated back above that threshold, with the ECB now expecting some fluctuation before it settles sustainably at the target. (Bloomberg)

China: China's weak consumption drags on economy as Trump tariff threat looms

China's industrial output growth quickened slightly in November, while retail sales disappointed, keeping pressure on Beijing to ramp up stimulus for a fragile economy as it braces for more US trade tariffs under a second Trump administration. The mixed set of data underlines the challenges facing Chinese leaders heading into 2025 when trade relations with the US could worsen at a time when domestic consumption also remains weak. China's industrial output grew 5.4% in November year-on-year, up from the 5.3% pace seen in October, data from the National Bureau of Statistics (NBS) showed on Monday, beating expectations for a 5.3% increase in a Reuters poll. (The Edge)

Companies

Advancecon: Clinches RM45m infra works job from Sime Darby Property

Advancecon Holdings Bhd has bagged a main infrastructure work contract worth RM44.6m by Sime Darby Property Bhd for the development at Elmina West. The project was won by its wholly-owned subsidiary Advancecon Infra Sdn Bhd, and will start from Jan 2, 2025 until July 1, 2026. The scope of the contract encompasses comprehensive main infrastructure works, including roads, drainage systems, water reticulation, sewerage, telecommunications, and other essential infrastructure designed to support the long-term growth and sustainability of the Elmina West community. With the latest win the group's unbilled order book value has increased to RM321.6m. (The Edge)

Perdana Petroleum: Secures anchor handling tug and supply vessel charter contract

Offshore marine service provider Perdana Petroleum Bhd has secured a charter contract for an anchor- handling tug and supply vessel from IPC Malaysia BV. In its filing with Bursa Malaysia on Monday, Perdana said the contract value cannot be determined at this time as it will depend on the vessel's assignment location throughout the three-year contract period, with an option for a further three-year extension. The contract was awarded to Perdana's wholly owned subsidiary, Perdana Nautika Sdn Bhd (PNSB), in relation to IPC's provision of production operations vessels for Petronas Carigali Sdn Bhd. (The Edge)

Infomina: Secures US$2.6m technology services order from Hong-Kong based firm

IT services provider Infomina Bhd has accepted a purchase order valued at US$2.6m (approximately RM11.6m) for the provision of technology application, infrastructure operations, maintenance, and support services. The order, accepted through Infomina's wholly owned subsidiary Infomina Pte Ltd (Infomina SG), was placed by Hong Kong Exchanges and Clearing Ltd, according to a filing with Bursa Malaysia on Monday. The purchase order is effective from Dec 1, 2024, through to Dec 31, 2027, it noted. (The Edge)

Berjaya Land: Partners IHG ANA Hotels Group Japan to rebrand ANSA Okinawa Resort in Japan

Berjaya Land Bhd, through its subsidiary BHR Okinawa Management GK, has signed an agreement with IHG ANA Hotels Group Japan to operate its existing ANSA Okinawa Resort in Okinawa, Japan. The 123- room hotel will be rebranded from ANSA Okinawa Resort to ANA Crowne Plaza Resort Okinawa Uruma Hills effective early January next year. In the statement, Berjaya Land group CEO Syed Ali Shahul Hameed said, "The rebranding of ANSA Okinawa Resort to ANA Crowne Plaza Resort Okinawa Uruma Hills marks an exciting milestone, aligning with IHG's exceptional standards and international network. (The Edge)

DRB Hicom: Geely ink MoUs with MIDA, MARii to spearhead next-gen vehicle production

DRB-Hicom Bhd said has inked memorandum of understanding (MOU) with two government bodies, namely the Malaysian Investment Development Authority (Mida) and Malaysia Automotive, Robotics and IoT Institute (MARii) to promote the enhancement and transformation of Malaysia's automotive industry in the Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak. The agreements signed together with its joint-venture (JV) partner, China's auto giant Zhejiang Geely Holding Group Co Ltd, were aimed at transforming AHTV into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components, according to DRB-Hicom in a statement. (The Edge)

KKB: Bags two contracts totalling RM89m

KKB Engineering Bhd has secured contracts from PETROSNiaga Sdn Bhd and Gamuda Bhd, totalling RM89m. In a filing with Bursa Malaysia, KKB said the contract from PNSB will be for the supply and delivery of new liquefied petroleum gas cylinders. Meanwhile, the contract from Gamuda is for the manufacture, supply, delivery and unloading of mild steel concrete lined pipes and specials in Sabah. (The Star)

Gamuda: Gamuda's Australian unit bags RM1.8bn EPC job for Goulburn River Solar Farm

Gamuda Bhd's Australian subsidiary DT Infrastructure Pty Ltd has secured an A$625m (RM1.8bn) engineering, procurement and construction (EPC) job for the Goulburn River Solar Farm project. In a filing with Bursa Malaysia on Monday, Gamuda said DT Infrastructure's role in the project will include the civil, structural and electrical infrastructure required for the 585MW solar farm commencing Jan 1, 2025. "Located in the Upper Hunter Region of New South Wales, the Goulburn River Solar Farm will provide a significant source of renewable energy to NSW (New South Wales) energy users," it said. (The Edge)

Crest: Acquires industrial property in Puchong to house new HQ

Imaging company Crest Group Bhd, which was listed on the ACE Market two months ago, said it is acquiring an industrial property in Puchong, Selangor for RM16.5m to establish its new headquarters. In a filing with Bursa Malaysia on Monday, Crest said it is buying the property from Oasis Harvest Corp Bhd, formerly known as Dolphin International Bhd. The property, comprising a three-storey detached factory and a three-storey office annex, sits on a land measuring 2,463 sq m. Crest said it plans to use the facility as its new headquarters to consolidate operations in the central region. (The Star)

Source: Mercury Securities Research - 17 Dec 2024