Economy

Global: US Stimulus set to turbocharge world economy as Europe lags — OECD. A US recovery turbocharged by President Joe Biden's stimulus package will help power a faster-than-expected global economic upswing that risks leaving Europe behind, according to Organisation for Economic Co-operation and Development (OECD) forecasts. The Paris-based organisation said it now expects global output to rise above pre-pandemic levels by mid-2021 after major economies showed greater resilience at the end of 2020, and as evidence of vaccine efficacy grows and governments add extra demand stimulus. (Bloomberg)

EU: Italy industrial production rises more than expected. Italy's industrial production rose more than expected in Jan, figures from the statistical office Istat showed. Industrial production grew 1.0% MoM in Jan, following a 0.2% increase in Dec. On a yearly basis, industrial output fell 2.4% in Jan, following a 1.6% decrease in the preceding month. Among all sectors, capital goods production gained 1.4% monthly in Jan and consumer goods output rose 1.2%. Intermediate goods production grew 0.4% Meanwhile, energy output decreased 0.8%. (RTT)

EU: German export growth improves; imports fall more than expected . Germany's exports growth accelerated at the start of the year despite lockdown restrictions, while imports logged a faster-than expected decline, data from Destatis revealed. Exports grew unexpectedly by 1.4% MoM, faster than the 0.4% rise in December. At the same time, imports decreased 4.7% after staying flat in the previous month. Imports were expected to drop 0.5%. As a result, the trade surplus rose to a seasonally adjusted EUR22.2bn from EUR16.4bn in the prior month. The surplus was expected to remain unchanged at the Dec level. (RTT)

EU: GDP Contracts In 4Q . Due to weak consumer spending, the euro area economy shrank at a faster than initially estimated rate in the fourth quarter of 2020, revised data from Eurostat showed. GDP declined 0.7% sequentially instead of 0.6% estimated on February 16. The fall reversed a record 12.5% rebound seen in the third quarter. On a yearly basis, GDP was down 4.9%, bigger than the 4.2% decline in the third quarter but slower than the 5.0% drop estimated on Feb 16. (RTT)

Taiwan: Feb exports up again, outlook good on chip demand . Taiwan's exports rose in Feb for the eighth month in a row, slightly slower than expected but benefiting from continued strong demand for chips to power technology for the work-from-home COVID-19 pandemic boom. Exports rose 9.7% from a year earlier to USD27.79bn in Feb, the Ministry of Finance said, affected by the week-long Lunar New Year holiday that occurred last month. (Reuters)

Australia: Central bank dismisses rate hike talk, cements lower for-longer rate view . Australia’s central bank chief rebuffed market talk of rate hikes, saying it will take at least until 2024 to reach full employment even as the economy was now within “striking distance” of its pre-pandemic output. Australia’s AUD2trn (USD1.5trn) economy expanded by a larger-than-expected 3.1% in the Dec quarter, clocking its fastest ever back-to-back quarterly rises. Job growth has been sturdy while retail sales are going strong too. (Reuters)

Markets

Saudee: Inks deal with Top Standard Corporation to supply frozen meat to China. Saudee Group has signed a distribution agreement with Top Standard Corporation (TSC), a listed Hong Kong company, to supply frozen meats and products to the Chinese markets. The deal sees TSC guarantee a minimum annual value of USD400k or RM1.64m order initially to attempt to penetrate the halal consumer market in China. The agreement allows TSC to distribute all of Saudee Group's brands such as Saudi Gold, Farm's Gold and Deli Deli to Hong Kong, Macao and China. (NST)

Kanger: To receive 10k doses of Sinopharm Covid-19 vaccine in May for trial purposes. Kanger International will receive 10k doses of a Covid-19 vaccine developed by stateowned China National Pharmaceutical Group Corp (Sinopharm) for trial purposes. It said the 10k doses of the vaccine will be for trial purposes and that it will be getting the necessary approvals from the relevant authorities. “The first batch of vaccines is expected to arrive in May 2021,” Kanger stated. (The Edge)

MRCB: To develop RM1.3bn GDV mixed-use project in Auckland. Malaysian Resources Corp (MRCB) is set to make its mark in New Zealand via a partnership with Panuku Development Auckland to develop the Aotea Central Over Station Development (OSD) with a GDV of RM1.3bn (NZD452m) in Auckland City Centre. The urban regeneration development above City Rail Link's Aotea Station spreads across 1.08 acres with a total gross floor area of approximately 45,292sqm. (The Edge)

Vizione: To jointly develop Malaysia Vision Valley 2.0 with NS Corp. Vizione Holdings (VHB) signed a memorandum of collaboration (MoC) with NS Corporation (NSC) to jointly develop Malaysia Vision Valley 2.0 (MVV 2.0). Under the MoC, both companies will discuss JV opportunities on the developments within the master land, covering districts of Seremban and Port Dickson. VHB’s ED Chan Chee Wing the company's current discussions centres on a development in stages with first phase being an international high speed processing, logistics, and distribution hub (IPLD) which will be part of a free trade zone (NST)

Daibochi: 2Q net profit up 3.2% despite higher raw material prices and freight costs. Daibochi’s net profit rose 3.2% YoY to RM15.1m for 2QFY21. Its revenue was up 1.5% YoY to RM161.34m. Operating profit, however, was down 22.1% YoY to RM16.51m, mainly due to higher raw material prices and surge in freight costs which depressed the overall group’s margin. (The Edge)

IPO: ACE Market-bound glove chlorination systems provider Flexidynamic to raise up to RM15.05m. Flexidynamic aims to raise up to RM15.05m in proceeds at its upcoming IPO. From this, a total of RM6.38m has been allocated to repay the bank borrowings drawn to fund the acquisition of new factories and RM420k for the renovation of the new factories, while RM1.63m has been allocated for the purchase of machinery and equipment. (The Edge)

Market Update

The FBM KLCI might open higher today after a gauge of global stocks headed for its biggest one-day percentage climb in a week on Tuesday as a fall in US Treasury yields eased concerns the economic recovery could overheat and lead to stronger-than expected inflation. On Wall Street, each of the major averages closed higher, led by a gain of nearly 4% in the Nasdaq, giving the tech-heavy index its best day since Nov. 4. The Dow Jones Industrial Average, after earlier topping 32,150, rose 30.3 points, or 0.1%, to end at 31,832.74, the S&P 500 gained 54.09 points, or 1.42%, to 3,875.44 and the Nasdaq Composite added 464.66 points, or 3.69%, to 13,073.83. In Europe, stocks closed higher after extending gains from their best session in four months a day earlier as a rise in shares of oil and utility companies helped counter losses in miners. The pan-European STOXX 600 rose 0.8%, with the utility sector rising more than 1.5%.

Back home, the FBM KLCI rose 0.8% or 12.97 points to its one month high of 1,624.78, lifted by gains seen among DiGi.Com Bhd, Axiata Group Bhd and Top Glove Corp Bhd. In the region, Japan’s Nikkei 225 was up by 0.99% or 284.69 points at 29,072.94, whereas Hong Kong's Hang Seng was 0.81% or 232.40 points higher at 28,773.23. However, the Shanghai Composite was 1.82% or 62.12 points lower at 3,359.29.

Source: PublicInvest Research - 10 Mar 2021