HEADLINES

Economy

US: Consumer confidence rises in Aug. US consumer confidence rose in August, but Americans are becoming more anxious about the labour market. The Conference Board said its consumer confidence index increased to 103.3 this month from an upwardly revised 101.9 in July. Economists polled by Reuters had forecast the index would be little changed from the previously reported 100.3. "Consumers assessments of the current labour situation, while still positive, continued to weaken, and assessments of the labour market going forward were more pessimistic," said Dana Peterson, the chief economist at the Conference Board. (Reuters)

EU: German economy shrinks as estimated. The German economy contracted, as initially estimated, in the second quarter due to weak household consumption and investment, official data revealed. GDP fell 0.1% sequentially, in line with the flash estimate, following a 0.2% rise in the first quarter, final results from Destatis showed. After the slight increase in the previous quarter, the German economy cooled down again in the spring, said Destatis President Ruth Brand. (RTT)

UK: Retail sales continue to fall: CBI. UK retail sales declined for the third straight month in Aug, the Distributive Trades Survey data from the Confederation of British Industry showed. A net 27% of retailers said that the sales volume decreased in the year to August compared to -43% in July. A net 17% said sales volume will fall again next month. The balance of retailers reporting sales for the time of year as poor improved to -21% from -36% in July. A net 18% said the sales volume is set to disappoint again in Sept. About a net 13% of retailers expect a moderate deterioration in their business conditions over the next three months. (RTT)

China: PDD’s USD55bn stock crash sends warning on China economy. One of the last remaining bright spots for Chinese consumption is rapidly fading, as the nation’s economic malaise takes a toll on demand for even the most accessible of goods. In the latest warning to global markets on the health of the Chinese economy, Temu-owner PDD Holdings Inc surprised investors with an unusually gloomy outlook. (Bloomberg)

China: Industrial profit growth quickens in July 2024. China’s industrial profits grew faster in July this year, data showed, even as sluggish domestic demand weighs on recovery in the world’s second-largest economy. Profits in July jumped 4.1% from a year earlier, following a 3.6% rise in June, according to National Bureau of Statistics (NBS) data. For the Jan-July period, profits expanded slightly faster at 3.6% compared with 3.5% in the first half, offering some hope of improving momentum amid dreary factory output, export, prices and banking lending numbers earlier in Aug. (Reuters)

Thailand: Thai banks' bad loans rise slightly in 2Q, cenbank sees gradual increase. Thai banks' non-performing loans (NPLs) rose slightly to 2.84% of outstanding loans at the end of June from 2.80% at the end of March, the central bank said. The secondquarter data include banks and their subsidiaries, the Bank of Thailand (BOT) said. Excluding the subsidiaries, banks' NPLs were 2.74% at the end of March. (Reuters)

Markets

SP Setia (Neutral, TP:RM1.30): Sues former senior management and a former director for alleged breaches of duties. Property developer SP Setia has initiated legal action against its former senior management and a former director of the group, over alleged breaches of duties linked to the purchase of lands in Kota Kinabalu, Sabah, and the sale of units under the group’s Aeropod project. The group’s former deputy president and chief operating officer Datuk Wong Tuck Wai, currently CEO of IJM Land; its former executive vice president Datuk Kow Choong Ming; and its former president cum CEO and director Datuk Khor Chap Jen were the first three defendants of the 11 defendants it named in the suit. (The Edge)

Rohas: Gets RM123m deal from Gamuda. Rohas Tecnic has received a letter of award from Gamuda for works pertaining to phase two of the Sg Rasau water treatment plant, worth RM123m. In a filing with Bursa Malaysia, Rohas said the contract was secured via the Rohas-Euco Industries, One Ocean Environment SB Consortium. The consortium comprised Rohas-Euco Industries, a wholly-owned subsidiary of Rohas and One Ocean Environment SB, which had accepted the letter of award from Gamuda M&E SB, a subsidiary of Gamuda. (StarBiz)

Varia: Wins Johor flood mitigation job. Varia has accepted a letter of award from Kator Construction SB for a flood mitigation project in Segamat, Johor, worth RM410.30m. In a filing with Bursa Malaysia, Varia said its wholly-owned subsidiary, Teguh Maju SB, had been appointed the sub-contractor of the project. The commencement and completion dates for the contract shall align with the main contract’s timeframe, for a period of 60 months from the date of commencement on July 23, 2024 until the date of completion on July 22, 2029. (StarBiz)

Binasat: Gets RM23.76m cable laying job. Binasat Communications (BCB) has accepted a letter of award from Enertra SB in respect of cable laying works in Ara Damansara, Selangor, for Tenaga Nasional (TNB) worth RM23.76m. The contract shall be effective from the date of the letter of acceptance and the time for completion shall be 730 days from the commencement date. (StarBiz)

Careplus: Buys 9.09% stake in Indonesian glove maker for RM3m. Careplus Group is expanding its footprint in Indonesia by acquiring a 9.09% stake in Indonesian glove maker PT Sintong Unigolden Glove (SUG) for RM3m. Careplus signed an investment and shareholders’ agreement with PT Sintong Abadi, PT Bima Sahabat Industri, and SUG, a company specialising in the production of medical gloves. (The Edge)

Tex Cycle: Unit secures rights to make Australia's BiobiN systems in Malaysia. Scheduled waste recycling company Tex Cycle Technology (M) said its subsidiary has been granted the rights to manufacture and distribute BiobiN systems in Malaysia, targeting improvements in waste conditioning in a closed environment. BiobiN systems is a waste management technology pioneered by two Australian companies BiobiN Technologies Pty Ltd and Peats Group Ltd. It is an on-site, capture and containment system used for composting organic material in an odour-free, easily accessible vessel. (The Edge)

MARKET UPDATE

The FBM KLCI might open higher today after Wall Street notched another record high Tuesday, even as major stock indexes barely budged after a listless day of trading. The Dow Jones Industrial Average rose 9 points, or less than 0.1%, which was good enough for its second all-time high in two days. The index is on an eightday winning streak. The benchmark S&P 500 and Nasdaq composite each finished 0.2% higher after drifting between small gains and losses most of the day. The benchmark S&P 500 is now within 0.8% of its record high set last month. Slightly more stocks closed lower than those that posted gains on the New York Stock Exchange, reflecting the choppy bout of trading so far this week. Stock indexes posted a mixed finish on Monday. The S&P 500 and Dow have been hovering around all-time highs since last week amid expectations among investors that the Federal Reserve will soon cut interest rates. European markets mostly rose, and Asian markets were mixed. Bursa Malaysia’s benchmark index gained 0.81%, closing at a fresh 44-month high, buoyed by robust sentiment amid strong earnings by the financial services sector. At the close, the FBM KLCI rose 13.33 points to 1,652.29 from Monday's close of 1,638.96. This level was the highest closing since Dec 21, 2020, when the index closed at 1,647.89.

Source: PublicInvest Research - 28 Aug 2024