HEADLINES

Economy

US: Gasoline, food boost US producer prices in Feb. US producer prices increased more than expected in Feb amid a surge in the cost of goods like gasoline and food, which could fan fears that inflation was picking up again. The producer price index (PPI) for final demand rose 0.6% last month after advancing by an unrevised 0.3% in Jan, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI climbing 0.3%. A 1.2% jump in the prices of goods accounted for nearly two-thirds of the increase in the PPI. Goods prices were driven by energy products, which surged 4.4% after declining 1.1% in Jan. Goods prices had edged down 0.1% in Jan. In the 12 months through Feb, the PPI shot up 1.6% after advancing 1.0% in Jan. Wholesale gasoline prices rose 6.8% last month. There were also increases in the prices of diesel and jet fuel. (Reuters)

US: Retail sales rebound in Feb; weekly jobless claims fall. US retail sales rebounded in Feb, driven by increases at auto dealerships and gasoline service stations, but consumer spending is slowing as households grapple with inflation and higher borrowing costs. Retail sales rose 0.6% last month, the Commerce Department's Census Bureau said. Data for Jan was revised lower to show sales tumbling 1.1% instead of 0.8% as previously reported. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.8% in Feb. Sales were held down in Jan in part by frigid temperatures and difficulties adjusting the data for seasonal fluctuations. (Reuters)

EU: Spain inflation eases to 2.8% as estimated. Spain inflation softened to a six-month low in Feb, as initially estimated, final data from the statistical office INE showed. Consumer price inflation weakened to 2.8% in Feb from 3.4% in the prior month. The rate came in line with estimate and was also the lowest since last Aug. The EU harmonized inflation also hit a six-month low of 2.9%, as estimated, and down from 3.5% in Jan. Underlying consumer price inflation softened marginally to 3.5% from 3.6%. On a monthly basis, the consumer price index moved up 0.4% in Feb versus a 0.1% gain in Jan. The Feb rate was revised up from 0.3%. The HICP moved up 0.4% on month, reversing a 0.2% drop in Jan. (RTT)

Hong Kong: Industrial output expands 4.1% in 4Q. Hong Kong's industrial production grew in the 4Q, largely driven by higher food product output, provisional data from the Census and Statistics Department showed. The index of industrial production for manufacturing industries as a whole climbed 4.1% annually in the fourth quarter, slightly slower than the revised 4.3% gain in the 3Q. On a quarterly basis, industrial production fell a seasonally adjusted 0.5% in the Dec quarter. The food, beverage, and tobacco industries had the largest increase in output volume by 5.5%. This was followed by the metal, computer, electronic, and optical products, machinery, and equipment industries with 2.5% growth. Data showed that the producer price index climbed 2.7% compared with the same period last year. (RTT)

South Korea: Export prices jump 4.2% on year in Feb. Export prices in South Korea climbed 4.2% on year in Feb, the Bank of Korea said - accelerating from the downwardly revised 3.6% increase in Jan (originally 3.7%). Export prices for agricultural, forestry and marine products slumped 4.7% on year, while prices for manufacturing products climbed 4.3%. Import prices slipped an annual 0.2% after rising an upwardly revised 0.5% in the previous month (originally 0.2%). Import prices for raw materials fell 1.9% on year, while intermediate goods shed 0.8%, capital goods rose 3.2% and consumer goods gained 3.8%. On a monthly basis, export prices were up 1.4% and import prices rose 1.2%. (RTT)

India: Wholesale prices rise 0.20%, less than forecast. India's wholesale prices increased for the fourth straight month in Feb, though at a slower-than-expected pace, data published by the National Statistical Office showed. The wholesale price index, or WPI, rose 0.20% YoY in Feb, slower than the 0.27% gain in Jan. Economists had expected a 0.25% increase for the month. The slowdown in inflation was mainly due to the continued fall in prices for fuel, power, and manufactured products. Meanwhile, food price inflation rose to 4.09% from 3.79% in Jan. Similarly, costs for primary articles grew at a faster pace of 4.49%. (RTT)

Markets

Awantec: Govt ordered to pay RM231.5m in damages. Awanbiru Technology (Awantec or formerly known as Prestariang Bhd) has won its legal suit against the government over the termination of the RM3.5bn National Immigration Control System (SKIN) project. However, shares of Awantec dropped as much as 16.7% to an intraday low of 42.5 sen following the High Court’s ruling, which awarded only one-third of the company’s RM733m claim in relation to the project termination. (The Edge)

Coastal Contracts: Acquires 82% stake in developer of overwater resort in Sabah. Energy infrastructure and marine services provider Coastal Contracts has ventured into the tourism industry by acquiring an 82% equity interest in a company undertaking an overwater resort in Sabah for RM18.98m. It acquired the stake in Jewel of Mabul Development SB (JOMD) by acquiring 100,000 shares in the company from Richard Christopher Barnes and subscribing for another 1.72m shares. JOMD owns 31.15 hectares of land in Pulau Mabul in Sabah's Semporna district on which the company is developing an overwater bungalow resort. Certain piling works for the land has been partly completed by the company. (The Edge)

HeiTech Padu: Sees emergence of another new substantial shareholder. HeiTech Padu saw Datuk Farhash Wafa Salvador emerge as a new substantial shareholder with an indirect interest of 15.9% or 16.1m shares acquired earlier this week. Farhash was formerly political aide to Prime Minister Datuk Seri Anwar Ibrahim and PKR’s Perak chief. He was appointed as executive chairman of Excel Force MSC in May last year, and group executive chairman of Apex Equity Holdings in Dec 2022. (The Edge)

CTOS: Seeks stay of execution of High Court judgement on inaccurate credit rating. CTOS Digital’s wholly-owned unit, CTOS Data Systems SB (CDS) has applied for a stay of execution of a High Court judgement, after CDS was ordered to pay damages to its client over inaccurate negative credit rating. CDS had appealed the decision of the High Court to the Court of Appeal on Feb 8, 2024 and had further filed an application to stay the execution of the judgement of the High Court. (StarBiz)

Kelington: Signs addendum with PETRONAS to accommodate increased demand for CO2 plant. Kelington Group has entered into an addendum to the agreement for the sale and purchase of carbon dioxide dated Nov 17, 2017 with PETRONAS Energy & Gas Trading SB. In a filing with Bursa Malaysia, the original capacity of the first carbon dioxide (CO2) recovery plant (P1) in Kemaman, Terengganu, is 50,000 metric tons per year. (StarBiz)

Econpile: Gets RM83m sub-structure job. Econpile Holdings has received a letter of award worth RM83m from BRDB Developments SB to undertake sub-structure works in Bukit Tunku, Kuala Lumpur. In a filing with Bursa Malaysia, the contract will consist of earthworks, structure retaining, piling, pile caps and stumps, road deck and ancillary works for a proposed development of 146 units of villa residences. It comprises eight blocks of villa residences with two and four levels of basement carpark, as well as two carpark blocks including common facilities and a club house. (StarBiz)

MARKET UPDATE

The FBM KLCI might open lower today after US Treasury yields and the dollar climbed yesterday, while a gauge of global stocks stumbled after a stronger than expected reading on US inflation cast doubt on the timing and magnitude of interest rate cuts from the Federal Reserve this year. The producer price index (PPI) for final demand rose 0.6% last month, above the 0.3% climb forecast by economists polled by Reuters, after advancing by an unrevised 0.3% in January, the Labour Department said. A reading on consumer inflation earlier this week also showed some stickiness in inflation. The Dow Jones Industrial Average fell 137.66 points, or 0.35%, to 38,905.66, the S&P 500 lost 14.83 points, or 0.29%, to 5,150.48 and the Nasdaq Composite shed 49.24 points, or 0.30%, to 16,128.53. MSCI’s gauge of stocks across the globe fell 2.75 points, or 0.35%, to 772.53, while the STOXX 600 index closed down 0.18% after hitting a third straight intraday record high. Europe’s broad FTSEurofirst 300 index shed 3.37 points, or 0.17%. Back home, late buying in selected industrial products and services as well as plantation counters pushed Bursa Malaysia to end at its intraday high on Thursday, amidst the mixed sentiment on regional bourses. At the closing bell, the FBM KLCI rose 5.62 points to 1,543.75 from Wednesday's close of 1,538.13.

Source: PublicInvest Research - 15 Mar 2024