HEADLINES

Economy

US: Inflation moderating; consumer spending underpinning economy. US prices moderated in Feb, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Fed on the table. The report from the Commerce Department also showed consumer spending rising by the most in just over a year last month, underscoring the economy's resilience. The US continues to outperform its global peers despite higher borrowing costs, thanks to persistent labor market strength. The personal consumption expenditures (PCE) price index rose 0.3% last month, the Commerce Department's Bureau of Economic Analysis said. (Reuters)

US: Annual consumer price growth ticks up to 2.5% in Feb. Consumer prices in the US increased by slightly less than expected in the month of Feb, according to a highly anticipated report released by the Commerce Department. The Commerce Department said consumer prices rose by 0.3% in Feb after climbing by an upwardly revised 0.4% in Jan. Economists had expected consumer prices to advance by 0.4% compared to the 0.3% increase originally reported for the previous month. (RTT)

EU: French inflation slowest since late 2021. France's CPI slowed to the lowest in 2.5 years in March on slower increases in food and energy prices, flash data from the statistical office INSEE showed. The CPI posted an annual increase of 2.3% in March, following Feb's 3.0% rise. The rate was the weakest since Sept 2021, when the figure was 2.2%. Consumer prices were forecast to climb 2.6% in March. The annual decrease reflects the slowdown in YoY growth rates in food, services, tobacco, and energy and manufactured product prices. Food inflation slid notably to 1.7% from 3.6%. Similarly, energy prices grew 3.4%, much slower than the 4.3% increase a month ago. (RTT)

Japan: Housing starts fall sharply. Japan's housing starts posted a sharper fall in Feb, data from the Ministry of Land, Infrastructure, Transport and Tourism showed. Housing starts fell 8.2% on a yearly basis in Feb, which was bigger than Jan's 7.5% drop and economists' forecast of 5.5% decrease. Housing starts have been falling since last June. Annualized housing starts dropped to 795,000 in Feb from 802,000 a month ago. Data showed that construction orders registered a double-digit annual decline of 11.0%, reversing a 9.1% rise in Jan. (RTT)

Japan: Tokyo inflation slowdown, output slide clouds BOJ's rate hike outlook. Core inflation in Japan's capital slowed in March and factory output unexpectedly slid in the previous month, heightening uncertainty on how soon the BoJ can raise interest rates again after exiting its radical monetary stimulus. The slew of weak signs in the economy could prompt the central bank to go slow in its next rate hike and give investors an excuse to continue selling yen, keeping pressure on Japanese authorities to intervene in the market to prop up the currency. Core CPI in Tokyo, an early indicator of nationwide figures, rose 2.4% in March from a year earlier, matching a median market forecast and slowing slightly from a 2.5% gain in Feb. (Reuters)

Thailand: Economy expands slowly in Feb. Thailand's economy expanded slowly in Feb with growth in the service sector and an increase in tourist arrivals offsetting a fall in exports from the previous month, the Bank of Thailand (BOT) said. Thailand recorded a current account (THCURA=ECI), opens new tab surplus of USD2bn in Feb, after a deficit of USD0.2bn in the previous month. There have been 8.73m foreign tourist arrivals in Thailand this year up to March 24, up 44% YoY, with visitors from China reaching 1.63m, tourism ministry data showed. The government is aiming for a record of 40m foreign visitors this year following the 28m in 2023. (Reuters)

Vietnam: Economy expands 5.66% in first quarter as exports boom. Vietnam's GDP grew 5.66% in the first quarter from a year earlier as exports boomed, government data showed, despite higher shipping costs due to turmoil in the Red Sea. Growth in the Jan-March quarter was faster than the expansion of 3.41% in the corresponding period last year, but slower than the fourth-quarter growth of 6.72%. First-quarter numbers are generally lower because of festival holidays. The Southeast Asian nation, a manufacturing hub and key exporter of smartphones, electronics and garments, is seeking to shore up business activities after missing last year's growth target on weak global demand and brief power shortages. It has set a target of 6.0% to 6.5% GDP growth this year. The manufacturing and construction sector grew 6.28%, while the services sector expanded 6.12% in the quarter from a year earlier, the General Statistics Office (GSO) said in a report. (Reuters)

Markets

Gamuda (Outperform, TP: RM5.80): Govt offers SRS Consortium works on first segment of Penang LRT. The government has offered Gamuda’s 60%-owned SRS Consortium SB civil works contracts on the first segment of the Penang Light Rail Transit (Penang LRT) and hopes to conclude talks with the company within six months. The offer is based on a request by the Penang state government that appointed SRS Consortium as the project delivery partner of the Penang Transport Master Plan (PTMP), through an open tender in August 2015. (The Edge)

Chin Hin: Makes takeover offer for Signature International at 84 sen per share. Chin Hin Group has made a conditional takeover offer to acquire all remaining shares of kitchen cabinet manufacturer Signature International at 84 sen per share. The offer follows Chin Hin’s acquisition of a 4.8% stake in Signature, bringing its total holdings to 33.5%. The offer price of 84 sen per share represents discounts ranging from 5.3% to 23.7% based on various volume weighted average market prices. (The Malaysian Reserve)

Mudajaya: Redesignates James Wong as executive chairman. Mudajaya Group has redesignated its group MD and CEO James Wong Tet Foh as executive chairman, effective 1 April 2024. Wong, 63, succeeds Lee Eng Leong, 56, who is stepping down due to personal reasons. Lee, who holds 0.09% stake in Mudajaya Group, will remain as an adviser to the group for the next few months to ensure a smooth leadership transition, together with the support of the board. (The Edge)

Yinson: Raises RM283m via private placement. Yinson Holdings has raised RM283.2m from a private placement to support its energy transition business. The exercise involved 120m new ordinary shares, representing about 4.1% of its total issued shares, excluding its treasury shares, to a selected group of institutional investors. The Retirement Fund (Inc) has subscribed to 50m shares as the anchor investor supporting the transition placement. The proceeds will be used to expand its renewable and green technology businesses. (StarBiz)

Jentayu: Secures SC approval for acquisition of Telekosang Hydro and Jentayu Solar assets. Jentayu Sustainables has received key approval with conditions from the Securities Commission Malaysia (SC) regarding the acquisition of Telekosang Hydro and Jentayu Solar assets, which is a major milestone towards the group transforming into a renewable energy player. The approval with conditions by the SC paves the way for the group to secure shareholder’s approval via an extraordinary general meeting. (StarBiz)

LYC Healthcare: Files fresh preliminary offer document for SGX listing. Confinement centre operator LYC Healthcare said its 64.5%-owned subsidiary LYC Medicare Singapore Ltd has lodged a new preliminary offer document with Singapore Exchange Ltd (SGX) for its listing proposed on the SGX’s Catalist board. Evolve Capital Advisory Private Ltd will be the new sponsor to guide the initial public offering (IPO) for LYC Medicare. The proposed listing was initially expected to be completed by the first half of 2023. (The Edge)

MARKET UPDATE

The FBM KLCI might open higher today after Asian shares were mostly higher Friday in quiet holiday trading, with markets closed in Hong Kong, Sydney, Singapore and India, among other places. Many financial markets are closed on Friday for Good Friday. In India, markets were closed for the Holi holiday. Tokyo’s Nikkei 225 rose 0.4% to 40,316.56 and the Kospi in Seoul edged 0.1% higher, to 2,748.55. The Shanghai Composite index gained 0.5% to 3,025.56. Taiwan’s Taiex advanced 0.4%. In Bangkok, the SET added 0.3%. Back home, Bursa Malaysia closed marginally higher last Friday, hitting an intraday high as bargain-hunting activities emerged following a few lacklustre trading sessions earlier. At the closing bell, the FBM KLCI gained 5.47 points to 1,536.07 from Wednesday’s close of 1,530.60.

Source: PublicInvest Research - 1 Apr 2024