HEADLINES

Economy

US: Labor market on firmer ground as Hurricane Helene, strike distortions loom. The number of Americans filing new applications for unemployment benefits increased marginally last week, but the devastation unleashed by Hurricane Helene in the U.S. Southeast and strikes at Boeing and ports could distort the labor market picture in the near-term. (Reuters)

EU: Growth slows to near halt in German services sector in Sept, PMI shows. Growth in Germany's services sector slowed for a fourth consecutive month in Sept, coming to a near standstill, as falling demand and recession concerns painted a gloomy picture for Europe's biggest economy. The HCOB final services PMI fell to 50.6 from 51.2 in Aug. (Reuters)

UK: Bank of England could become 'more aggressive' on rate cuts, Bailey says. The BOE could move more aggressively to cut interest rates if inflation pressures continue to weaken but conflict in the Middle East could push up oil prices, Governor Andrew Bailey said. Bailey told the Guardian newspaper the BOE could become "a bit more activist" and "a bit more aggressive" in its approach to lowering rates, if there was further welcome news on inflation for the central bank. (Reuters)

Japan: Service sector expands for third month, but confidence dips, PMI shows. Japan's service sector activity expanded for the third straight month in Sept, but the pace slowed slightly and confidence dipped in a sign of the broader economic strains amid weakness in manufacturing, a private survey showed. The final au Jibun Bank Service PMI declined to 53.1 in Sept from 53.7 in Aug. (Reuters)

Singapore: Private sector PMI slows to 56.6 in Sept. The private sector in Singapore continued to expand in Sept, albeit at a slower pace, the latest survey from S&P Global revealed with a PMI score of 56.6. That's down from 57.6 in Aug, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. (RTT)

Australia: Has AUD5.6bn trade surplus. Australia posted a seasonally adjusted merchandise trade surplus of AUD5.644bn in Aug, the Australian Bureau of Statistics. That beat forecasts for a surplus of AUD5.510bn and was up from the upwardly revised AUD5.636bn surplus in July (originally AUD5.009bn). (RTT)

Markets

MPHB Capital: Privatisation hits stumbling block. The privatisation of MPHB Capital has been met with a stumbling block put up by ISM SB, which is the company's minority partner in six joint-venture companies. MPHB said ISM had filed an intervening application on the grounds that the proposed selective capital reduction — which is part of the privatisation exercise — would affect ISM’s rights against MPHB in relation to an ongoing contentious shareholder dispute between the two parties and MPHB's subsidiaries. (The Edge)

Velesto: Completes periodical works on Naga 6 rig on schedule. Velesto Energy has completed its mandatory five yearly special periodical survey for its Naga 6 back-up rig on schedule. The works, conducted in the Labuan shipyard, include essential class recertification, upgrades, repairs and maintenance on equipment from drilling to well control, pipe racking, as well as some piping and steel renewal, among others. (The Edge)

Lay Hong: NH Foods ceases to be Lay Hong’s substantial shareholder. NH Foods Ltd, a joint venture partner of Lay Hong, has ceased to be the latter’s substantial shareholder after disposing of 62.3m shares, or an 8.24% stake. The shares were sold via an off-market transaction. While the selling price was not disclosed, the stake could be valued at approximately RM24.9m. (The Edge)

DS Sigma: Gets nod for Main Market transfer. DS Sigma Holdings has obtained approval from the SC for its transfer to the Main Market of Bursa Malaysia. DS Sigma announced that the SC had, vide its letter dated Oct 2, approved the proposed transfer from the ACE Market to the Main Market of Bursa Malaysia. (StarBiz)

Atlan Holdings: Units get compulsory land acquisition for road construction project in Bukit Kayu Hitam. Atlan Holdings indirectly owned units, Cergasjaya SB and Cergasjaya Properties SB have received notices for the compulsory acquisition of their lands in Bukit Kayu Hitam, Kedah, for a road construction project. The land was acquired by Malaysia's Home Affairs Ministry and is administered by the Department of Director General of Lands and Mines, Kedah. (The Edge)

MyEG: Blockchain developer launches digital ID verification for Chinese nationals. MyEG Services blockchain developer, Zetrix, has come out with a digital identification (ID) verification service for Chinese nationals on the ZCert service. Through the ZCert service, Zetrix now simplifies and facilitates electronic "know your customer" processes for entities outside of China wishing to verify the authenticity of information contained in the digital IDs presented to them by Chinese nationals. (The Edge)

Harrisons: Proposes one-into-five share split. Harrisons Holdings (Malaysia) has proposed to split each of its shares into five shares in a move to improve the trading liquidity of the shares. The share split will take place based on an entitlement date to be determined later, and is expected to be completed by the fourth quarter of this year. (The Edge)

Sungei Bagan: Revises acquisition deal with Kuchai Development, excludes RM7.7m land. Sungei Bagan Rubber Company (Malaya) has clarified that the transfer of agricultural land in Semenyih, Selangor, which was initially part of its acquisition deal with Kuchai Development, has been entirely excluded from the agreement signed on Dec 29, 2023. (StarBiz)

MARKET UPDATE

The FBM KLCI might open lower today as crude prices jumped Thursday on worries that worsening tensions in the Middle East could disrupt the global flow of oil, while US stocks pulled back further from their records. The S&P 500 fell 0.2% amid a shaky week that’s knocked the index off its all-time high set on Monday. The Dow Jones Industrial Average fell 184 points, or 0.4%, and the Nasdaq composite edged down by less than 0.1%. Stocks sank as oil prices kept rising amid the world’s wait to see how Israel will respond to Iran’s missile attack from Tuesday. A barrel of Brent crude, the international standard, leaped 5% to settle at $77.62 after starting the week below $72. It’s potentially on track for its biggest weekly percentage gain in nearly two years. Oil prices rose after President Joe Biden suggested on Thursday that US and Israeli officials were discussing a possible strike by Israel against Iranian oil facilities. In stock markets elsewhere, Japan’s Nikkei 225 jumped 2% as its sharp swings continue amid speculation about when the country’s central bank may hike interest rates next. Hong Kong’s Hang Seng has also been swerving, and it gave back 1.5%. Stocks in China have largely been surging on hopes for a flurry of recent announcements from Beijing to prop up the world’s secondlargest economy. With Shanghai and other markets in China closed for a weeklong holiday, trading has crowded into Hong Kong. Back home, the FBM KLCI added 2.24 points or 0.14% to 1641.55.

Source: PublicInvest Research - 4 Oct 2024