HEADLINES

Economy

US: Mortgage applications grow 7.1% - MBA. Mortgage applications in the US rose at a slower pace in the week ended March 8, weekly survey data from the Mortgage Bankers Association showed. The Market Composite Index, which measures the mortgage loan application volume, rose a seasonally adjusted 7.1%, data from the MBA Weekly Mortgage Applications Survey revealed. Mortgage applications grew 9.7% in the previous week ended March 1. The Purchase Index increased a seasonally adjusted 5% versus 11% in the previous week. (RTT)

EU: Germany wholesale prices continue to fall. Germany's wholesale prices continued to decline in Feb, data from Destatis showed. Wholesale prices dropped 3.0% on a yearly basis, sharper than the 2.7% fall in Jan. Wholesale prices have been falling since April 2023. MoM, wholesale prices edged down 0.1%, offsetting the 0.1% rise in Jan. Prices were expected to grow 0.2%. Data showed that the annual fall in petroleum prices had the greatest impact on overall wholesale prices. (RTT)

UK: Economy grows by 0.2% in Jan after shallow recession. The UK economy rebounded in Jan, registering modest growth after falling into a technical recession in the second half of last year. GDP rose 0.2% following a 0.1% decline in Dec, the Office for National Statistics (ONS) said. Services and construction delivered the gains, offsetting a drop in industrial production. The figures leave Britain on track to grow over the first quarter as a whole, bringing the recession to an end. (The Edge)

Japan: BoJ looks for final piece of rate puzzle in wages. Japan is about to see whether wage hikes will be strong enough to prompt the central bank to conduct its first interest rate hike since 2007 as early as next week, a move that would influence prices on everything from financial assets to mortgages to daily necessities. A wide range of unions are poised to release results from negotiations. (Bloomberg)

Singapore: GDP to expand faster than expected in 2024: MAS survey. The Singapore economy is projected to expand slightly faster than previously estimated this year, according to the Survey of Professional Forecasters, released by the Monetary Authority of Singapore. GDP is forecast to grow 2.4% in 2024, slightly faster than 2.3% projected in the previous survey. For the next year, GDP growth is seen at 2.5%. (RTT)

Australia: Household spending gauge drops. Household spending declined in Feb, the nation’s largest lender says, as the Reserve Bank of Australia’s (RBA) interest rate increase late last year weighed further on consumer activity. The Household Spending Insights (HSI) index fell 0.3% to 141.6 points, led by declines in household goods and transport, Commonwealth Bank of Australia (CBA) said. Spending gained on utilities, health and hospitality, the latter led by a 76% jump in music festivals, but wasn’t sufficient to counter the falls. (Bloomberg)

Thailand: Industrial sentiment falls slightly. The Thai industrial sentiment index fell slightly in Feb due to slower domestic demand and exports, though tourism lent some support, the Federation of Thai Industries (FTI) says. FTI said its industrial sentiment index in Feb slipped to 90 from 90.6 in the previous month. (Reuters)

Indonesia: Consumer confidence remains strong. Indonesian consumers continued to express a positive attitude in Feb, survey data from the Bank Indonesia showed. The consumer confidence index dropped to 123.1 in Feb from 125.0 in the previous month. However, a reading above 100 indicates optimism among households. (RTT)

Markets

CTOS: KWAP emerges as CTOS Digital's substantial shareholder after May 12 selloff. The Retirement Fund Inc. (KWAP) net bought 27.4m shares in the selloff in CTOS Digital's shares, giving it a substantial 5.807% stake in the company. KWAP bought 28.81m shares and later sold 1.37m shares yesterday, raising its 1.53% interest in the company to 5.807%. CTOS Digital saw a significant drop in its value, losing 13% of its share price following a High Court ruling that said it lacked the authority to create credit scores. (NST)

Kumpulan Jetson: Receives arbitration notice related to RM88m job awarded five years ago. Kumpulan Jetson’s wholly owned unit received a notice of arbitration from its former client O&C Makok Isola SB (OCMI) in relation to an RM88.03m job to build four blocks of serviced apartments in Jalan Yap Kwan Seng here. In commencing the arbitration, OCMI is seeking to claim RM30.88m, or a sum to be assessed by the Tribunal for the additional costs relating to the appointment of a replacement contractor to complete the works. (The Edge)

Tropicana: Calls off collaboration agreement with Pantai Kok Resort to develop land at Langkawi. Tropicana Corp and Pantai Kok Resort Development have mutually agreed to terminate a 44.61-acre land development at Padang Mat Sirat, Langkawi. Tropicana was the developer to undertake the joint development agreement (JDA) on the Pantai Kok land. In consideration of the current market conditions and given the development on the Pantai Kok land has yet to commence, the parties have mutually agreed to terminate the Pantai Kok JDA. (The Edge)

Eversendai: Bags RM5.4bn in new projects. Eversendai Corp has announced that its subsidiaries have secured new projects worth a combined RM5.4bn in Saudi Arabia, the UAE and India. Its subsidiary Eversendai Engineering Saudi LLC in collaboration with Albawani Co Ltd have secured their first structural steel signature building from NEOM for the Trojena Ski Village in Tabuk, Saudi Arabia. In the UAE, another subsidiary, Eversendai Mega Structure FZ LLC, has secured the structural steel scope for the Wynn Al Marjan Island Integrated Resort Development in Ras Al Khaimah. (StarBiz)

JAG: Proposes one-for-five bonus issue of shares with threefor-five free warrants. JAG, whose share price has risen 15% YTD, has proposed a bonus issue of 125.36m new shares on the basis of one bonus share for every five existing shares held. The waste management solutions provider is also planning a bonus issue of up to 376.07m free warrants on the basis of three warrants for every five existing shares held. The bonus issue of both the new shares and warrants are intended to reward existing shareholders. (The Edge)

Lee Swee Kiat: Announces one-for-two bonus issue. Mattress manufacturer Lee Swee Kiat Group (LSK) is proposing a bonus issue of up to 83.91m new shares. Shareholders will get one bonus share for two existing shares held. LSK has an issued share capital of RM16.78m comprising 161.82m shares, including 6.46m treasury shares as of March 8. The entitlement date for the corporate exercise will be determined at a later date upon receipt of relevant approvals (The Edge).

MARKET UPDATE

The FBM KLCI might open lower today after the S&P 500 and Nasdaq edged lower on Wednesday as investors took profits in chipmaker stocks, while they braced for producer price data and further clues on the inflation trend ahead of next week's Federal Reserve meeting. The Dow Jones Industrial Average rose 37.83 points, or 0.1%, to 39,043.32. The S&P 500 lost 9.96 points, or 0.19%, at 5,165.31 and the Nasdaq Composite dropped 87.87 points, or 0.54%, to 16,177.77. Tuesday's slightly hotter-thanexpected consumer price data failed to dampen hopes of rate cuts in the coming months. MSCI's gauge of stocks across the globe fell 0.39 points, or 0.05%, to 775.32, after climbing within 0.15% of an intraday record. The STOXX 600 index closed up 0.16%, adding to its record level, aided by retail stocks, while Europe's broad FTSEurofirst 300 index rose 3.83 points, or 0.19%.

Back home, Bursa Malaysia snapped its four-day winning streak to close lower on Wednesday, driven by continuous profit taking in heavyweights led by plantation stocks. At the closing bell, the FBM KLCI declined 16.43 points or 1.05% to 1,538.13 from Tuesday's close of 1,554.56. Stocks in the region mostly increased Wednesday while the Japanese market showing a third day of decreases. Hong Kong's Hang Seng Index weakened 0.1% to 17,082.11, while the Nikkei 225 Index of Japanese companies declined 0.3% to 38,695.97. China's Shanghai Composite Index fell 0.4% to 3,043.83, while The FTSE Straits Times Index of Singapore stocks rose 0.6% to 3,160.72. The KOSPI Composite Index of South Korean stocks increased 0.4% to 2,693.57, while the S&P/ASX 200 Benchmark Index of Australian stocks increased 0.2% to 7,729.40.

Source: PublicInvest Research - 14 Mar 2024