HEADLINES

Economy

US: Homelessness rose by record 18% in latest annual data. There was a record 18% rise in homelessness in the US in the last year, driven by factors like unaffordable housing, high inflation, systemic racism, natural disasters and rising immigration, the US Department of Housing and Urban Development said. The problem of homelessness has been getting worse in the US, with commonplace sightings in many cities of destitute people living in the open, with tents pitched on city sidewalks. The federal and state governments have pushed with divergent strategies to deal with the crisis. (Reuters)

US: May hit new debt limit as early as Jan 14, Yellen says. The US Treasury Department may need to take "extraordinary measures" by as early as Jan 14 to prevent the US from defaulting on its debt, Treasury Secretary Janet Yellen told lawmakers. Yellen urged lawmakers in the US Congress to act "to protect the full faith and credit of the United States." US debt is expected to decrease by about USD54bn on Jan 2 "due to a scheduled redemption of nonmarketable securities held by a federal trust fund associated with Medicare payments," she added. (Reuters)

EU: Spain retail sales growth weakest in 5 months. Spain's retail sales growth eased further in Nov to the lowest level in five months, data from the statistical office INE showed. Retail sales climbed 1.0% on a yearly basis, following a 3.4% rise in Oct. Further, this was the slowest growth since June, when sales had risen 0.6%. The annual sales growth in non-food products moderated to 1.2% from 5.9% in Oct. Similarly, sales of food products rose at a slower pace of 1.5%. (RTT)

China: Nov industrial profits narrow decline but 2024 likely worst year in decades. China's industrial profits fell at a slower clip in Nov, official data showed, but the annual decline in earnings this year is expected to be the worst in over two decades due to persistently soft domestic consumption. The world's second-largest economy has been struggling to mount a strong post-pandemic revival, as business and household appetites for spending and investment remain subdued amid a prolonged housing downturn and fresh trade risks from the incoming US administration of President-elect Donald Trump. (Reuters)

Japan: Industrial production falls, retail sales growth improves. Japan's industrial production decreased for the first time in three months in Nov, while retail sales grew at an accelerated pace, separate reports from the Ministry of Economy, Trade and Industry showed. Industrial production fell a seasonally adjusted 2.3% MoM in Nov, reversing a 2.8% rise in Oct. Economists had expected a 3.4% decline. On a yearly basis, the decline in industrial production was 2.8% versus a 1.4% rebound a month ago. Shipments were down 2.7% on the month and down 3.8% on the year.. (RTT)

India: Household spending on non-food items rises as urban- rural gap narrows. Indian household spending on non-food items such as transport, garments and entertainment rose in both rural and urban areas in 2023/24 while outlays on staples like wheat and rice dropped, a government report showed. The Household Consumption Expenditure Survey for 2023/24, conducted from Aug 2023 to July 2024, showed non-food items accounted for about 53% of per capita spending in rural areas, up from about 47% in 2011/12, and 60% in urban areas, up from about 57%. (Reuters)

South Korea: Industrial output sinks 0.7% in Nov. Industrial production in South Korea contracted a seasonally adjusted 0.7% on month in Nov, Statistics Korea said, missing forecasts for a decline of 0.4% following the flat reading in Oct. On a yearly basis, industrial output was up 0.1%, again shy of expectations for a gain of 0.4% following the 6.3% increase in the previous month. The index of all-industry production was down 0.4% on month and 0.3% on year. Retail sales were up 0.4% on month following the downwardly revised 0.8% drop in Oct (originally -0.4%); sales were down 1.9% on year. (RTT)

Markets

PUC: 27.53%-owned Pictureworks files for Nasdaq listing. PUC Bhd's 27.53%-owned associated company, Pictureworks International Holdings Limited, has filed Form F-1 with the United States Securities and Exchange Commission (SEC) on 26 Dec for its proposed listing on Nasdaq. PUC said the proposed listing is part of Pictureworks' strategic plan to enhance its global visibility and unlock shareholder value. PUC said the proposed listing is expected to boost Pictureworks' access to global capital, accelerate growth, and expand its market presence, potentially enhancing PUC's investment value. (The Star)

Nova MSC: pulls out of subscription deals with Singapore investors, explores new investment. Nova MSC decided not to proceed with its share subscription agreements with two Singapore-based investment firms, Jostar Investment VCC and Mark Investment Group VCC (MIG). The decision follows the withdrawal of its 60%-owned unit, Dex-Lab Pte Ltd, and 42%-owned EyRIS Pte Ltd from the deals due to extended time frames required for internal and regulatory processes. (The Malaysian Reserve)

Crescendo: Q3 earnings surge four-fold buoyed by Nusa land sales. Crescendo Corporation's net profit surged fourfold to RM102.99m in the third quarter ended Oct 31, 2024 (Q3FY25) from RM17.97m in the same period last year. This was due to the data centre land sales in Nusa Cemerlang Industrial Park (NCIP). Revenue for the quarter rose 127% to RM231.2m versus RM101.8m in Q3FY24. For the nine-month period (9MFY25), the company's net profit jumped to RM532.9m from RM35.5m previously. Crescendo holds an optimistic outlook for the property market, especially in Johor in the next few years. (Business Times)

GPP Resources: To sell 51% stake in Gambang Power Plant for RM25,500. GPP Resources has proposed to dispose of its 51% stake in Gambang Power Plant SB for RM25,500 cash. GPP said its wholly-owned subsidiary, Green Energy Resources (M) SB, entered into a share sale agreement with Wee Lok Hain and Ma Eng Yau for the disposal of 25,500 ordinary shares, representing a 51% stake. "Gambang has been dormant since its incorporation. As such, the management decided to divest its investment in Gambang and to redirect its resources to other subsidiaries. (The Star)

SCGM: Formalises injection of agriculture business, proposes 25sen special dividend. SCGM's substantial shareholders are to inject their agriculture-related business into the cash company in return for RM207.9m worth of shares as part of the company's regularisation plan. SCGM entered into a conditional share sale agreement with several vendors to acquire the entire equity interest in Eramas Global Group SB for the issuance of 569.7m SCGM shares at an issue price of 36.5 sen. (The Edge)

OCB: To exit building materials sector with RM3m sale of Agrow Malaysia. OCB is selling its wholly owned subsidiary, Agrow Malaysia SB, for RM3m in cash. The purchaser, Tan Sim Lam, will also assume responsibility for Agrow's RM20.3m debt. The move is part of OCB's strategic restructuring to improve its financial position and focus on its profitable segments, including consumer foods, bedding products, and property development. The sale marks OCB's exit from the building materials sector. (The Malaysian Reserve)

MARKET UPDATE

The KLCI might open lower today after stocks fell broadly on Friday as Wall Street closed out a holiday-shortened week on a down note. The losses were made worse by sharp declines for the Big Tech stocks known as the "Magnificent 7", which can heavily influence the direction of the market because of their large size. The S&P 500 fell 66.75 points, or 1.1%, to 5,970.84. Roughly 90% of stocks in the benchmark index lost ground, but it managed to hold onto a modest gain of 0.7% for the week. The Dow Jones Industrial Average fell 333.59 points, or 0.8%, to 42,992.21. The tech-heavy Nasdaq composite fell 298.33 points, or 1.5%, to 19,722.03. Despite Friday's drop, the market is moving closer to another standout annual finish. The S&P 500 is on track for a gain of around 25% in 2024. That would mark a second consecutive yearly gain of more than 20%, the first time that has happened since 1997-1998. The gains have been driven partly by upbeat economic data showing that consumers continued spending and the labour market remained strong. Inflation, while still high, has also been steadily easing. A report on Friday showed that sales and inventory estimates for the wholesale trade industry fell 0.2% in November, following a slight gain in October. That weaker-than-expected report follows an update on the labour market Thursday that showed unemployment benefits held steady last week. The stream of upbeat economic data and easing inflation helped prompt a reversal in the Federal Reserve's interest rate policy this year. Expectations for interest rate cuts also helped drive market gains. The central bank recently delivered its third cut to interest rates in 2024. In the region, Japan's benchmark index surged as the yen remained weak against the dollar. Stocks in South Korea fell after the main opposition party voted to impeach the country's acting leader. Back home, the KLCI added 14.44 points or 0.89% to 1628.14.

Source: PublicInvest Research - 30 Dec 2024