HEADLINES

Economy

US: Consumer confidence steady in March; inflation expectations creep up. US consumer confidence was little changed in March as fading fears of a recession took a backseat to growing concerns about the nation's political environment ahead of Nov's presidential election. Its consumer confidence index dipped to 104.7 this month, essentially unchanged from a downwardly revised 104.8 in Feb. Economists had forecast the index nudging up to 107.0 from the previously reported 106.7. Consumers' inflation expectations ticked up to 5.3% from 5.2% in Feb. (Reuters)

US: House prices fall for first time since Aug 2022. US house prices declined on a MoM basis in Jan for the first time in nearly 1.5 years, defying expectations for an increase. House prices fell a seasonally adjusted 0.1% from Dec, when they rose 0.1%. Economists had expected a 0.2% gain for Jan. On a YoY basis, house prices rose 6.3% in Jan. US house prices declined slightly in Jan, marking the first decrease since Aug 2022. However, the YoY house price growth remained near the historical average. (RTT)

EU: German consumer confidence to rise slowly. The improvement in consumer sentiment in Germany is set to continue slowly as the economic recovery is expected only in the second half of the year. The forward-looking consumer confidence index rose to 27.4 in April from a revised 28.8 in March. The score was seen at 27.9. Economic and income expectations improved slightly in March but the propensity to buy remained almost unchanged. The propensity to save provided an upward boost to the confidence. (RTT)

EU: German employers planning to hire more. Companies in Germany were willing to hire more this month as their confidence regarding the economic outlook improved. The ifo Employment Barometer rose to 96.3pts in March from 94.9pts in Feb. Companies are currently more willing to hire because they are better able to assess the economic conditions. Skilled workers continue to be in demand. However, manufacturers and firms in the trade sector continued to expect job cuts. (RTT)

Japan: BoJ's core inflation measure eases to 2.3% in Feb. The BoJ’s underlying inflation measure slowed more than expected in Feb. The core inflation rate, which is a trimmed mean in BoJ calculations, eased to 2.3% from 2.6% in Jan and Dec. Economists had expected the rate to slow to 2.5%. The latest rate is the lowest since Sept 2022, when it was 2.0%. Core inflation that excludes prices of fresh food accelerated sharply to 2.8% in Feb from 2.0% in Jan. (RTT)

Japan: Land prices rise at fastest pace since 1991. Japan's land prices rose at the fastest pace in 33 years in 2023 and returned to the level seen before the coronavirus crisis. The rise was helped by the economic recovery and return of foreign visitors after the pandemic. Average nationwide land prices rose 2.3% in the year through 1 Jan, the strongest pace of growth since a 11.3% gain in 1991 when land prices started weakening with the bursting of the late 1980s asset bubble. (Reuters)

India: Central bank likely to hold rates steady until at least July. The Reserve Bank of India (RBI) will keep interest rates unchanged until at least July, a bit longer than the US central bank is expected to do so, on strong growth and still-elevated inflation. India's economy grew a stellar 8.4% in 4Q 2023, the fastest among major economies. Inflation, which is still close to the upper band of the central bank's 2%-6% target, does not hint at an imminent rate cut. (Reuters)

South Korea: Consumer sentiment dips as food inflation emerges as top election issue. South Korea's consumer sentiment dropped sharply in March on growing worries about higher produce prices, as inflation hitting the dinner table emerges as a major policy issue at next month's elections. The consumer sentiment index fell to 100.7 in March from 101.9 in Feb, posting the biggest monthly drop since Oct. Inflation expectations among consumers for the next 12 months rose for the first time in five months, to 3.2% from 3.0%. (Reuters)

Singapore: Industrial output grows most in 4 months. Singapore's industrial production expanded for the second straight month in Feb, largely on the back of strong growth in the biomedical and transport engineering clusters. Industrial production rose 3.8% YoY in Feb, faster than the 0.6% rebound in Jan. Further, this was the biggest growth since Oct 2023, when production had risen 6.8%. Excluding bio-medical manufacturing, industrial production grew 1.4% annually in Feb after a 4.7% gain in the previous month. (RTT)

Hong Kong: Feb home prices ease for the 10th month, down 1.7%. Hong Kong private home prices fell for the tenth month in a row to the lowest since Sept 2016 in Feb, and they are expected to remain suppressed even after the government recently removed the decade-long curbs for the property market. (Bloomberg)

Markets

Icon Offshore: Ekuinas sells controlling 50.2% interest to Liannex Maritime for RM172.7m. Ekuiti Nasional (Ekuinas) special purpose vehicle Hallmark Odyssey SB has sold its 50.2% controlling interest in Icon Offshore to Singapore-based Liannex Maritime SB for RM172.7m. Liannex Maritime is privately owned by energy infrastructure company Yinson Holdings chairman and major shareholder Lim Han Weng. The stake was sold to Liannex Maritime via a direct business transaction at 63.5sen a share. The deal triggers a mandatory general offer, which will see Liannex offering 63.5sen a share and RM0.001 an offer warrant for the remaining shares and warrants in Icon Offshore. (New Straits Times)

Kelington: Commences second liquid carbon dioxide plant in Kerteh. Kelington has announced the commencement of its second liquid carbon dioxide (LCO2) production plant in Kerteh, Terengganu via its 90.71%t owned subsidiary Ace Gases SB. This new plant, with a production capacity of 70,000 tonnes per year, increases the company's total LCO2 production capacity to 120,000 tonnes per year. Kelington CEO Raymond Gan said the start of the second LCO2 plant positions the company for expanded revenue growth in the industrial gas sector, enabling it to meet increasing demand effectively. (Bernama)

Marine & General: Sells another vessel, to reinvest in new chemical tankers. Marine & General (M&G) sold its oil products tanker, JM Sutera 5, to Kalianda Permata Transport for USD5.55m (about RM26.21m), to partly finance its fleet optimisation strategy. M&G, which owns 70% in vessel operator Jasa Merin (M) SB, said the cost of investment for the 16-year-old JM Sutera 5 — built in 2008 — was USD5.42m, with the net carrying value recorded at USD4.36m. The group intends to “reinvest in new chemical tankers to renew its vessel fleet,” the marine logistics services provider said. (The Edge)

SSF Home: To ride on consistent consumer demand. SSF Home aims to capitalise on opportunities presented by a gradual recovery in the country's exports and steady domestic demand in the services sector. "Our group has opened three additional retail outlets (i.e. Kluang, Seremban and Teluk Intan) in the fourth quarter of FY24, which is a strategic step towards enhancing our market presence thoughtfully and sustainably, reinforcing our commitment to our customers and our vision for strategic growth,” said executive director Lok Kok Khong. (The Star)

MCE Holdings: Gets contracts to supply parts for Proton. MCE Holdings’ wholly owned subsidiary, Multi-Code Electronics Industries (M), has bagged contracts to supply electronic and mechatronics parts for the Proton car model. The project is slated to commence in the second quarter of the financial year ending 31 July 2025, lasting for 84 months. It is anticipated to generate approximately RM55.19m in revenue for MCE Group, with a projected investment cost of RM0.65m. (The Malaysian Reserve)

Ewein: Buying land in Butterworth to develop workers’ dormitory. Ewein Bhd is acquiring a vacant piece of industrial land in Butterworth for RM25.84m to develop a workers’ dormitory in a related party transaction. The property developer and precision sheet metal fabrication manufacturer said the move is in line with the group's intention to diversify into the provision of workers’ dormitory accommodation and manpower management related services. (The Edge)

MARKET UPDATE

The FBM KLCI might open lower today after Wall Street turned modestly lower in late trade yesterday, mostly in sync with subdued global share market movements, while the yen hovered near 2022 intervention levels after more official Japanese jawboning to deter shorting of the currency since last week’s monetary policy tightening. The S&P 500 closed down 14.61 points, or 0.28%, at 5,203.58. the Dow Jones Industrial Average fell 31.31 points, or 0.08%, to 39,282.33, and the Nasdaq Composite fell 68.77 points, or 0.42%, to 16,315.70. The Pan-European STOXX 600 index rose 0.24%.

Back home, Bursa Malaysia closed higher on Tuesday, buoyed by late buying in blue-chip stocks led by Maybank Bhd, MISC Bhd, and Petronas Chemicals Group Bhd, amid the mostly weaker performance in regional peers. At the closing bell, the FBM KLCI inched up by 0.88 of a point to 1,538.42 from Monday’s close of 1,537.54. Elsewhere, MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.25% higher at 535.59.

Source: PublicInvest Research - 27 Mar 2024