HEADLINES

Economy

US: Construction sector helps to lift private payrolls in Sept. US private payrolls increased more than expected in Sept, boosted by hiring in the construction, leisure and hospitality industries, adding to the evidence of a stable labor market. The release of the ADP National Employment Report followed government data that showed there were 1.13 job openings for every unemployed person in Aug compared to 1.08 in July. (Reuters)

US: Fed's Barkin says rates were 'out of sync' before Sept cut, inflation fight not done. The US central bank's 0.5ppts interest rate cut last month was an acknowledgement that its policy rate was "out of sync" with where the economy stands, but shouldn't be taken as a sign that the battle with inflation is finished, Richmond Federal Reserve President Thomas Barkin said. With inflation falling and unemployment around what is considered its long-term sustainable rate, "the number that now seemed out of sync was the fed funds rate, which no longer needed to be as restrictive given the progress that's been made," Barkin said. (Reuters)

EU: ECB's top hawk shifts tone with sanguine inflation message. Euro zone inflation is increasingly likely to ease back to the ECB’s 2% target, ECB board member Isabel Schnabel said, dropping her long-standing warning about the difficulty of taming price growth and likely boosting rate cut bets. Inflation dipped under 2% last month and the 20-nation currency bloc is skirting a recession, so markets are already betting that the ECB will have to speed up interest rate cuts with its next move seen on 17 Oct. (Reuters)

Japan: PM Ishiba wants BOJ to be careful when hiking rates further. Japan's newly appointed economy minister, Ryosei Akazawa, said on Wednesday that Prime Minister Shigeru Ishiba expects the Bank of Japan to make careful economic assessments when raising interest rates again. "Our top priority is to ensure that Japan completely exit from deflation," said Akazawa in his first news conference as the economy minister. "It will take some time to achieve the full exit." (Reuters)

South Korea: Factory activity shrinks sharply as overseas demand weakens, PMI shows. South Korea's factory activity contracted at the sharpest pace in 15 months in Sept as overseas demand slowed for the first time in the year, a private survey showed on Wednesday, suggesting a slow road to a full-blown economic recovery. The PMI for manufacturers compiled by S&P Global, stood at 48.3 in September on a seasonally adjusted basis, down from 51.9 in August. The index fell below the 50-mark, which separates expansion from contraction, for the first time in five months and registered the lowest reading since June 2023. (Reuters)

Australia: Services PMI slows in Sept – Judo. The services sector in Australia continued to expand in Sept, albeit at a slower pace, the latest survey from Judo Bank revealed with a services PMI score of 50.5. That's down from 52.5 in Aug. Higher new business inflows supported the latest expansion in services activity, with firms in the consumer services sector experiencing the fastest rise in both new business and activity. (RTT)

Markets

Sunway: Buys 18-acre land worth RM320m. Sunway Melawati SB, a full subsidiary of Sunway, has agreed to acquire a 17.6-acre prime freehold land from Viva Impian SB in the Taman Taynton neighbourhood of Kuala Lumpur for RM320m. Sunway said the proposed land acquisition is strategically situated adjacent to its Sunway Alishan residential development, and that the parcel of land is earmarked for a mixed-use development with an estimated gross development value of RM3.2bn. “The proposed development will integrate opulent serviced apartments offering a unique urban living experience with a vibrant wellness-focused retail podium featuring health and wellness clinics,” the group said. (StarBiz)

Samaiden: Bags related-party contract to build solar power plant in Negeri Sembilan. Samaiden Group has bagged a RM39.2m contract to undertake a 10-megawatt LSS PV power plant in Bahau, Negeri Sembilan, in a related-party transaction. The contract was awarded by Bahau Power SB, which is owned by Angelaxy Power SB (51%) and Uzma Environergy SB (49%). The scheduled commercial operation date of the plant is Sept 15, 2025. (The Edge)

Econpile: Bags RM33m piling and substructure jobs in KL. Econpile Holdings has secured two contracts from Sg Besi Construction SB, totalling RM33.3m, to carry out piling and substructure works for residential and office buildings in Kuala Lumpur. The first contract, worth RM21.3m, is related to a 51-storey serviced apartment with 653 units for Lofthill Development SB. Meanwhile, the second contract, valued at RM12m, is for a 59- storey office building with 350 units for Armani Development SB. (The Edge)

Sin-Kung Logistics: Expands into private jet and air freight services via Prima Air acquisition. Sin-Kung Logistics is diversifying into private jet charter and air freight cargo services with the acquisition of loss-making Prima Air SB for RM20.7m cash. Sin-Kung has entered into a share sale agreement with Tan Sri Halim Mohammad and Puan Sri Mazmin Noordin to acquire 20m shares, representing the entire equity interest in the company. (The Edge)

MMAG: Triggers GN3 criteria, to submit application for waiver. MMAG Holdings has been classified as a Guidance Note 3 (GN3) company after its external auditor, Grant Thornton Malaysia PLT, flagged material uncertainty in the company's audited financial statements for the financial year ended March 31, 2023 (FY2023) that would affect its ability to continue as a going concern. MMAG intends to submit an application for a waiver from being classified as an affected listed issuer to Bursa Securities as it has already taken relevant measures. (The Edge)

KIP-REIT: Gets nod for DPulze Shopping Centre buy. KIP Real Estate Investment Trust (KIP-REIT) has secured shareholders’ approval to acquire DPulze Shopping Centre in Cyberjaya for RM320m. The real estate investment company also received approval for a private placement of up to 180m new units, representing approximately 29.1% of existing issued units, to partially fund the acquisition. In a statement after its AGM and EGM, KIP-REIT said it expects the private placement exercise to raise up to RM146.7m in gross proceeds. (StarBiz)

MARKET UPDATE

The FBM KLCI might open higher today after US stocks edged higher in a quiet Wednesday, and Treasury yields rose following an encouraging update on the job market’s strength. The S&P 500 finished virtually unchanged, a day after sliding from its record on worries about a possible widening of the fighting in the Middle East. The Dow Jones Industrial Average edged up by 39 points, or 0.1%, and the Nasdaq composite added 0.1%. Oil prices rose again as the world waits to see how Israel will respond to Tuesday’s missile attack from Iran, but they pared their gains as the day progressed. After briefly topping $76 earlier, the price for a barrel of Brent crude settled at $73.90, up 0.5%. In stock markets elsewhere, Hong Kong’s Hang Seng roared 6.2% higher, riding a wave of investor enthusiasm over recent announcements from Beijing to rev up the Chinese economy. With Shanghai and other markets in China closed for a holiday, trading crowded into Hong Kong. Japan’s Nikkei 225 lost 2.2% to continue its sharp swings, while indices in Europe were mixed. Back home, the FBM KLCI ended lower by 17.08 points or 1.03% to 1649.31.

Source: PublicInvest Research - 3 Oct 2024