HEADLINES

Economy

US: Consumer confidence ebbs in Sept on labour market fears. US consumer confidence unexpectedly fell in Sept amid mounting worries over the health of the labour market. The Conference Board said its consumer confidence index dropped to 98.7 this month from an upwardly revised 105.6 in Aug. The decline was the largest since Aug 2021. Economists polled by Reuters had forecast the index rising to 104.0 from the previously reported 103.3. (Reuters)

EU: German business confidence dips in latest recession warning. Germany’s business outlook worsened again — reinforcing fears that Europe’s biggest economy is in a recession with no quick rebound imminent. The Ifo institute’s expectations gauge dipped to 86.3 in Sept from 86.8 the previous month. That’s still the lowest since February and slightly below what analysts in a Bloomberg poll had seen. A barometer of current conditions declined more strongly. (Bloomberg)

UK: Bank of England's Bailey says interest rates are gradually heading downwards. The BoE should be able to lower interest rates gradually as it gains confidence that inflation will remain close to its 2% target, Governor Andrew Bailey said in an interview published. Bailey said he was "very encouraged" by the downward path of inflation since it peaked at 11.1% nearly two years ago. (Reuters)

China: Unleashes stimulus package to revive economy, markets. China’s central bank unveiled a broad package of monetary stimulus measures to revive the world’s second-largest economy, underscoring mounting alarm within President Xi Jinping’s government over slowing growth and depressed investor confidence. People’s Bank of China (PBOC) governor Pan Gongsheng cut a key short-term interest rate and announced plans to reduce the amount of money banks must hold in reserve to the lowest level since at least 2018, appearing at a rare briefing alongside two of the country’s other top financial regulators in Beijing. (Bloomberg)

Japan: BOJ's Ueda signals no rush to hike, citing time to weigh policy. Governor Kazuo Ueda reinforced his message that while the Bank of Japan (BOJ) will raise its key interest rate again if data allows, authorities won’t be in a hurry to do so, in remarks that indicate little chance of a policy move at next month’s meeting. “In making policy decisions, the bank will need to carefully assess factors such as developments in financial and capital markets at home and abroad, and the situation in overseas economies underlying these developments,” Ueda said on Tuesday in a speech in Osaka, western Japan. (Bloomberg)

Markets

Magma: To undertake RM380m capital reduction, buy KL land to bolster finances. Magma Group has announced a string of proposals to strengthen its financial position and expand property development portfolio. The key proposals include a RM380m capital reduction and an acquisition of a 0.92 ha land in the soughtafter Persiaran Dutamas area here. Magma said the moves are part of Magma's ongoing effort to position itself for sustainable growth and enhance shareholder value. The proposed capital reduction will see Magma reduce its issued share capital by up to RM380m. (BTimes)

Harn Len: To dispose of Johor land for RM55m. Harn Len Corp is disposing of a piece of land measuring 3,725.8 sq m in Johor Baru to Starsea Resources SB for RM55m. The land is located within the northern portion of the central business district of Johor Baru city centre and within the Ibrahim International Business District transformation plan. The land remains vacant and currently being used as a public parking with a monthly rental of RM11,000. (StarBiz)

Pesona Metro: Wins RM321m building job. Pesona Metro Holdings (PMHB) has accepted a letter of award from Sime Darby Property (Golfhome) SB for the execution and completion of superstructure works worth RM321.09m. The superstructure works is for three condominium blocks comprising 150 units in Bukit Kiara, Kuala Lumpur. The project will be for a period of 27 months from the date of commencement, 11 Oct 2024. The award of the project will not have any impact on the share capital and shareholding structure of the company. (StarBiz)

Dolphin International: Asia Poly ceases to be substantial shareholder in Dolphin International. Cast acrylic manufacturer Asia Poly Holdings has ceased to become a substantial shareholder in Dolphin International. On Sept 23, Asia Poly offloaded 10m shares in Dolphin International, which is involved in palm oil mill manufacturing via an off-market transaction. Based on back-of-the-envelope calculations, the shares represent a 7.47% stake in Dolphin International, trimming Asia Poly’s shareholding in Dolphin to 4.09m shares or 3.05%. (The Edge)

Yinson: Peru solar project begins ops. Yinson Holdings’ Matarani solar plant in Peru has entered into its full operational phase, following the commencement of power export and sales in July 2024. The 97 MWp plant, located near Arequipa, positions Yinson Renewables as Peru’s second-largest solar generator and is the group’s first operational project in Peru. The plant, which commenced operations ahead of schedule, is designed to deliver 260 gigawatt hours of renewable energy annually. It is estimated to be able to satisfy the electricity needs of approximately 62,000 Peruvian households and prevent the emission of more than 56,000 tonnes of carbon dioxide per year. (StarBiz)

Eonmetall: Plans placement to raise RM8.64m for working capital. Steel products manufacturer Eonmetall Group is looking to raise RM8.64m by placing out up to 10% of its share base to fund its working capital. The group plans to issue up to 27.7m shares to independent third parties at an issue price to be determined. Based on an indicative issue price of 31.18 sen per share, a 9.99% discount to the five-day volume-weighted average market price up to and including Sept 19 of 34.64 sen per share, the exercise is expected to raise RM8.64m. (The Edge)

MARKET UPDATE

Key US benchmarks finished at record-highs overnight, though fears of a slowing economy continue to linger after last week’s larger-than-expected rate cut by the US Federal Reserve. Upcoming economic data which includes new home sales for August and weekly jobless claims due out on Wednesday and Thursday respectively will be keenly watched to give more glues on the direction of the economy. The Dow Jones Industrial Average and the S&P 500 both edged up 0.2% as the Nasdaq Composite rose 0.5%. European stocks closed higher as a weak business activity reading strengthened the case for further monetary policy easing by the European Central Bank this year, with rate-sensitive sectors such as real estate and utilities rising. Germany’s DAX rose 0.8%, France’s CAC 40 gained 1.2% while the UK's FTSE 100 advanced 0.2%. Asian stocks rose to their highest in more than two and half years, buoyed by broad stimulus measures from China while expectations for more US rate cuts kept risk sentiment elevated and the US Dollar under pressure. Tokyo's Nikkei 225 rose 0.5%, while the Hang Seng Index and the Shanghai Composite both advanced 4.0%.

Source: PublicInvest Research - 25 Sept 2024