HEADLINES

Economy

US: Factory orders decline again in Dec. New orders for US manufactured goods dropped in Dec, pulled down by a decline in bookings for civilian aircraft, but demand elsewhere was marginally firm. Factory orders tumbled 0.9% after a revised 0.8% decline in Nov, the Commerce Department's Census Bureau said. Economists polled by Reuters had forecast factory orders would fall 0.7% after a previously reported 0.4% drop in Nov. Factory orders were unchanged on a YoY basis in Dec. Manufacturing, which accounts for 10.3% of the economy, has been constrained by the Federal Reserve's aggressive interest rate hikes in 2022 and 2023. It has shown signs of revival as the US central bank started easing monetary policy. (Reuters)

US: Job openings decline sharply in Dec to 7.6m, below forecast. Job openings slid in Dec while hiring, voluntary quits and layoffs held steady, the Labor Department reported. Available positions tumbled to 7.6m, the lowest since Sept, and below the Dow Jones estimate for 8m, the Bureau of Labor Statistics said in its monthly Job Openings and Labor Turnover Survey. The decline left the ratio of open jobs to available workers at 1.1 to 1. Though the report runs a month behind other jobs data, the Federal Reserve watches it closely for signs of a slack or tight labor market. While the net gain in nonfarm payrolls picked up in the month by 256,000, the level of openings fell by 556,000. As a share of the labor force, openings declined to 4.5%, or 0.4ppts below Nov. (CNBC)

EU: Spain unemployment rises less than forecast. Spain's unemployment increased less than expected in Jan and also hit the lowest level for the month in 17 years as the economy continued to exhibit robust growth, official data showed. The number of people out of work increased 38,725 in Jan from the previous month, the labor ministry said. Unemployment was expected to climb 45,400. Compared to Jan 2024, unemployment decreased by 168,417 or 6.08%. Data showed that registered unemployment totalled 2.599m, which was the lowest figure for Jan in the last 17 years. (RTT)

EU: Romania producer prices fall 0.7%. Romania's producer prices decreased for the fourth straight month in Dec, data from the National Institute of Statistics showed. The producer price index dropped 0.7% yearly in Dec, following a 0.3% fall in Nov. Prices in the domestic market rose 2.3% annually in Dec, while those in the foreign market climbed by 3.6%. Among the main industrial groups, prices for the energy industry plunged by 7.7 from last year. (RTT)

EU: Irish manufacturing activity recovers in Jan. Ireland's manufacturing sector expanded for the first time in three months in Jan amid renewed rises in both new orders and output, survey results from S&P Global showed. The headline AIB Manufacturing Purchasing Managers' Index rose to 51.3 in Jan from 49.1 in Dec. A score above 50 indicates expansion, while any reading below 50 suggests contraction in the sector. New orders increased marginally after falling in the previous two months, while export orders continued to decline in Jan. In response to the upturn in new business, production volumes rose modestly after a sharp contraction in Dec. (RTT)

Japan: BOJ aims to stabilise overall CPI around 2% target, governor Ueda says. The Bank of Japan will aim to sustainably achieve 2% inflation as measured by the overall consumer price index, Governor Kazuo Ueda said, keeping alive market expectations of a near-term interest rate hike. Overall consumer price index (CPI) rose 3.6% in Dec from a year earlier, much faster than a 3.0% gain in the core index that strips away the effect of volatile fresh food prices. Ueda's remarks followed the BOJ's decision last month to raise short-term interest rates to 0.5%, a level unseen in Japan for 17 years, underscoring policymakers' conviction the economy is on course to achieve wage-driven, durable price rises. (Reuters)

Australia: Services PMI improves to 51.2. The services sector in Australia continued to expand in Jan, and at a faster pace, the latest survey from S&P Global revealed with a services PMI score of 51.2. That's up from 50.8 in Dec, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Anecdotal evidence suggested that improving customer demand was a key factor behind the latest rise in activity. Stronger demand conditions and an increase in customer numbers helped lead to a further expansion of new orders during Jan. (RTT)

New Zealand: Jobless rate climbs to 5.1% in Q4. The unemployment rate in New Zealand came in at a seasonally adjusted 5.1% in the fourth quarter of 2024, Statistics New Zealand said, in line with expectations and up from 4.8% in the previous three months. New Zealand's employment was down 0.1%, which beat expectations for a fall of 0.2% after slipping 0.5% in the three months prior. For men, the unemployment rate was 4.9%, compared with 4.7% in the third quarter. (RTT)

Markets

Malakoff (Neutral, TP: RM0.85): Divests MUSB to focus on high-growth areas. Malakoff Corp has signed an SPA for the disposal of its 100% equity interest in Malakoff Utilities SB (MUSB), to KJ Technical Services SB (KJTS). The SPA signing took place at the Malakoff Headquarters at Plaza Sentral in KL Sentral with Malakoff MD and group CEO Anwar Syahrin Abdul Ajib and KJTS group ED Sheldon Wee Tah Poh as the signatories. The ceremony was witnessed by Malakoff chairman Tan Sri Che Khalib Mohamad Noh and KJTS independent non-executive chairman Azura Azman. (The Malaysian Reserve)

Fajarbaru: JV secures RM131.6m job expansion for redevelopment of military facilities in Butterworth. A JV between Fajarbaru Builder Group and Avionics Pty Ltd has secured a RM131.6m contract from the Australian Department of Defence that expands their scope of works in the redevelopment of military facilities located at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang. The latest contract is for the delivery phase of Phase Two of the design and construction of the infrastructure project. (The Edge)

Keyfield: Secures contracts worth RM59.6m for AHTS, DP2 AWB charters. Keyfield International's wholly-owned subsidiary, Keyfield Offshore SB, has secured two contracts worth RM59.6m for the charter of an anchor handling tug supply vessel (AHTS) and one dynamic positioning 2 accommodation work boat (DP2 AWB). The offshore support and accommodation vessels company stated that the AHTS charter will begin in early April 2025 for 720 days, with a 180-day extension option, operating in the UAE. The charterer is a UAE-based offshore marine service provider. (StarBiz)

Ge-Shen: Dispose of five properties for RM35m to streamline operations. Ge-Shen Corp has entered into a binding term sheet with Plastico SB for the proposed sale of five properties in Taman Gembira, Johor Bahru, valued at a total of RM35m. The properties, situated on freehold land, include offices, warehouses, and factories. The company stated that the proceeds from the disposal would be used to repay bank borrowings and support the group's working capital, which is expected to improve future cash flow and lower its gearing ratio. (The Malaysian Reserve)

Senheng: Disposes of industrial land in Johor for RM11.2m. Senheng New Retail is disposing of a piece of vacant, freehold industrial land measuring 1.04 hectares in Johor Baru to Mactree SB for RM11.2m. Senheng said the proposed disposal provides an opportunity for the company to realise the value of the property, which had increased in value since its acquisition in 2018. The company added that the disposal will also provide immediate cash flow towards its business operations for its working capital purposes. (StarBiz)

Ann Joo: Acquires remaining 45% stake in industrial land firm. Steel manufacturer Ann Joo Resources said it is acquiring the remaining 45% equity interest in Konsortia Etiqa SB (KESB), the owner of 437 acres of industrial land in Kedah, for RM96m. It is acquiring the stake through its wholly owned subsidiary, Ann Joo Management Services SB (AJMS), from KESB director Datuk Ong Tee Thong. Upon completion, AJMS will hold 96% of KESB, with the remaining 4% retained by another subsidiary, Ann Joo Steel. (The Edge)

MARKET UPDATE

The KLCI might open higher today after calm returned to Wall Street Tuesday, and tech stocks led US indices higher following a strong profit report from Palantir Technologies, a darling benefiting from the artificial-intelligence boom. The S&P 500 rose 0.7% a day after swinging sharply on worries that President Donald Trump's tariffs could spark a trade war that would hurt economies around the world, including the United States. The Dow Jones Industrial Average added 134 points, or 0.3%, and the Nasdaq composite climbed 1.4%. Trump on Monday agreed to delay his taxes on US imports of Canadian and Mexican products for a month, with the announcement on Canada coming after trading closed for the day. That bolstered Wall Street's longstanding hopes that Trump's tough talk on tariffs may be just that, talk. The hope is that Trump sees tariffs as a stick he can use in negotiations with trading partners rather than as a long-term policy. In stock markets elsewhere, London's FTSE 100 slipped 0.1%, but other big European indices rose modestly. In Asia, Hong Kong's Hang Seng jumped 2.8%, and South Korea's Kospi rose 1.1%. Back home, the KLCI added 10.93 points or 0.70% to 1564.56.

Source: PublicInvest Research - 5 Feb 2025