Economy

US: Factory orders jump more than expected in Aug. A report released by the Commerce Department on showed new orders for US manufactured goods jumped by more than expected in the month of Aug. The factory orders surged up by 1.2% in Aug after climbing by an upwardly revised 0.7% in July. Economists had expected factory orders to increase by 0.9% compared to the 0.4% rise originally reported for the previous month. (RTT)

US, China: Trade Chief to engage with China on trump-deal shortfalls. The Biden administration will directly engage with Beijing in the coming days to enforce commitments in their trade deal and start a new process to exclude certain products from US tariffs in an effort to help American workers and businesses. US Trade Representative Katherine Tai is set to speak to Chinese Vice Premier mainly stress China’s shortfalls in the agreement. (Bloomberg)

EU: Sentix investor confidence weakens in Oct. Eurozone investor confidence weakened for the third straight month in Oct, survey data from the behavioral research institute Sentix showed. The investor sentiment index dropped more-than-expected to 16.9 in Oct from 19.6 in Sept. The expected level was 18.6. The latest score was the lowest since Apr 2021. (RTT)

EU: German ministry jumps to ECB’s aid in defending inflation spike. Germany’s economy ministry is joining a ECB campaign trying to assuage concerns among the population that currently high inflation rates are here to stay. The ECB has been adamant that price pressures will fade next year, and that monetary stimulus is still needed to support demand over the medium term. (Bloomberg)

Japan: Suzuki takes Japan finance reins as election, stimulus loom. Shunichi Suzuki is seen keeping the fiscal policies of recent years and continuing to support the Bank of Japan’s bond-buying and ultra-low interest-rates, although there is speculation he might be susceptible to pressure to spend more. (Bloomberg)

Markets

Genting (Outperform: TP: RM5.70): To gain maiden exposure to Blumont via Landmarks asset sale . Genting via 24.98%- owned associate Landmarks is expected to gain its maiden exposure to Singapore-listed Blumont Group Ltd after Landmarks proposed to sell its Indonesian hospitality asset to Blumont in an estimated SGD63.4m (RM195.1m) all-share deal which will see Landmarks emerge as a substantial shareholder with a 29.34% stake in Blumont. (The Edge)

Hibiscus Petroleum (Outperform, TP: RM1.05): Remains committed to move development in the UK North Sea; proposes 1.0 sen dividend . Hibiscus Petroleum said its indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd remains committed to working with the UK Oil and Gas Authority to move the Quad 15 area development in the UK North Sea forward. Hibiscus also proposed a final dividend of 1.0 sen per share for the FYE June 30, 2021, subject to shareholders' approval at the forthcoming annual general meeting. (The Edge)

Mesiniaga: Signs supply contracts with Measat Broadcast Network Systems . Mesiniaga has accepted two contracts with Measat Broadcast Network Systems SB for the supply of equipment and infrastructure. It said the contracts entail the supply of RGW and MESH WiFi routers as well as the supply and commissioning of Internet service provider core infrastructure. The contract for the supply of the internet service provider core infrastructure, which carries a value of RM49.33m, is for the period of Sept 30, 2021, to Feb 28, 2027. (StarBiz)

Rubberex: Ventures into property investment via strategic stake in Empire City Mall in PJ . Making its first foray and diversification into property investment, glove maker Rubberex Corp (M) Bhd is undertaking a joint collaboration with Alliance Premier SB, EXSIM Holdings SB and JT Momentum SB (EXDJ shareholders) for the development and operation of Empire City Mall in Petaling Jaya, Selangor. (The Edge)

Silver Ridge: Bags RM20.64m contract from TM. Silver Ridge Holdings has secured an RM20.64m contract from Telekom Malaysia (TM) for the supply, delivery, testing, commissioning, maintenance and support services of Metro Ethernet Forum Carrier Ethernet 2.0 Complaint Network Interface Device (NID). Silver Ridge accepted the letter of award from TM's associated accessories and element management system (EMS). (BTimes)

Freight Management: Expands into US market via acquisitions of three US-based firms . Freight Management Holdings is buying three US-based freight forwarding services companies for a combined USD2.2m (approximately RM9.2m), as part of the group's expansion initiatives into selective international markets. Freight Management indirect wholly-owned subsidiary FM Global Logistics Ventures SB has entered into a stock purchase agreement with several independent third parties to acquire the entire issued shares of Inter-Orient Services, Inter Orient Corp and Noble Shipping Corp. (The Edge)

Ni Hsin: Signs brand partnership deal with estate agent group . Ni Hsin Group has entered into a brand partnership deal with the Malaysian Institute of Estate Agents (MIEA) to market its products and services to registered members of MIEA. (The Edge)

Market Update

The FBM KLCI might open with a cautious note today after shares of big tech companies slid on Monday, with stocks such as Apple, Microsoft, Facebook and Amazon dragging the S&P 500 to its lowest close since late July. The benchmark index fell 1.3%, taking it more than halfway to an official correction — when stocks drop 10% from their all-time high. Some of the index’s tech heavyweights propelled the decline. Facebook was among the five worst-performing stocks on the S&P 500, declining 4.9% as its Instagram, WhatsApp and namesake Facebook services suffered outages. Pessimism about the company — and the broader tech industry — has been mounting in US financial markets in recent weeks, with the tech-heavy Nasdaq Composite down 7.5% from a record high hit last month. It fell 2.1% on Monday. In Europe, the Stoxx 600 index closed down 0.5%, following a 2.2% decline last week. London’s FTSE 100 fell 0.2%.

Back home, Bursa Malaysia ended marginally lower on Monday, dragged down by selling in selected heavyweights amid weaker sentiment in the regional markets. At 5pm, the benchmark FBM KLCI eased 2.01 points to 1,522.47 from Friday’s close of 1,524.48. The key regional markets pulled back as investors were cautious about the US debt ceiling crisis along with an uptick in yields while continued worries over the Chinese economy also added pressure on Asian equities. Hong Kong’s Hang Seng Index fell 2.2%, while Japan’s Nikkei 225 Index declined 1.1%. Markets in mainland China are closed until Friday for the Golden Week holiday.

Source: PublicInvest Research - 5 Oct 2021