Highlights

PublicInvest Research

Author: PublicInvest   |   Latest post: Fri, 27 Nov 2020, 11:04 AM

 

PublicInvest Research Headlines - 11 Aug 2020

Author:   |    Publish date:


Economy

US: Job openings rise in June, likely exaggerate labour market health. US job openings increased in June but the surge in vacancies was accompanied by a rise in workers quitting their positions at hotels, restaurants and bars, likely because of fears of exposure to Covid-19 and problems securing child care. Despite the increase in vacancies reported by the Labor Department, job openings remained below their pre-pandemic level, supporting the view that it could take the labour market years to recover from the public health crisis. (Reuters)

US: Consumer grew more pessimistic in July after two months of improvement – NY Fed survey. After two months of feeling slightly better about their odds in the labor market, Americans grew more pessimistic in July, according to a survey released by the New York Federal Reserve. The shift reflects the effects of fresh restrictions enacted by state and local governments to combat a resurgence in coronavirus infections. US employment growth slowed considerably in July, reflecting a potential slowdown in the economic rebound. Nonfarm payrolls increased by 1.8m jobs last month, compared to the record 4.8m jobs added in June, the Labor Department said. Consumers said the mean perceived probability of losing their job over the next year increased to 16% in July from 15% in June, above the 2019 average of 14.3%, according to the New York Fed survey. (Reuters)

UK: Consumer spending recovers in July as pubs and restaurants reopen. British consumers spent the most last month since the country went into a coronavirus lockdown in March, as pubs, restaurants, barbers and beauty salons reopened, according to industry figures published. Data from Barclaycard and the British Retail Consortium showed spending was close to getting back to normal levels though not all sectors were benefiting. Barclaycard said consumer spending was 2.6% lower than in July 2019, the smallest shortfall since the lockdown began. “However, a sense of cautiousness still prevails,” Barclaycard director Esme Harwood said. Official figures are expected to show Britain suffered the biggest economic hit from Covid-19 of any major economy between April and June with output expected to be down by about 20%. (Reuters)

China: Factory deflation slows in July as recovery gains strength. China’s factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre coronavirus levels, adding to signs of recovery in the world’s second-largest economy. The PPI fell 2.4% YoY in July, the National Bureau of Statistics (NBS) said, compared with a 2.5% decline tipped in a Reuters poll of analysts and a 3.0% drop in June. Analysts say China’s industrial output is steadily returning to levels seen before the pandemic paralysed huge swathes of the economy, as pent-up demand, government stimulus and surprisingly resilient exports propel a recovery. (Reuters)

China: Inflation rises 2.7% in July, driven by higher food costs. China’s inflation rate rose 2.7% in July, up from the 2.5% gain in June, data released showed. The rising CPI was slightly worse than the inflation rate of 2.6% expected by analysts. Pressure on China’s manufacturing sector following the impact of the coronavirus pandemic, meanwhile, eased slightly in July as the PPI, reflecting the prices that factories charge wholesalers for their products, fell 2.4% YoY, data from the National Bureau of Statistics (NBS) showed. That was a smaller drop than June’s reading of a 3.0% decline and better than the 2.5% contraction tipped by analysts in a survey. Within CPI, food prices rose 13.2% YoY, with pork up 85.7%. (SCMP)

Japan: Leading index rises; labor cash earnings decline slows. Japan's leading index increased in June and labor cash earnings declined at a softer rate, data showed. The leading index, which measures the future economic activity, rose to 85.0 in June from 78.3 in May, the Cabinet Office revealed. The coincident index increased to 76.4 in June from 72.9 in the previous month. The lagging index rose to 93.3 in June from 92.5 in the prior month. Data from the Ministry of Health, Labor and Welfare revealed that total cash earnings fell 1.7% YoY in June, following a revised 2.3% decline in May. Contractual gross earnings decreased 1.3% in June, while special cash earnings declined 2.4%. Real cash earnings fell 1.9% in June, following a 2.3% decline in the previous month. (RTT)

Markets

Hartalega (Neutral, TP: RM21.70): To acquire land in Sepang, Selangor. Hartalega has accepted a land sale offer for a piece of industrial land in Sepang that is priced at RM158.3m. (Bursa Malaysia)

Comment: Hartalega has accepted an offer from Kumpulan Tanjung Balai SB to purchase a plot of industrial land in Sepang, measuring 60.6 acres, for a total purchase consideration of RM158.3m. This plot of land is earmarked for Hartalega’s future expansion needs and based on its preliminary expansion plans; this parcel of land will house 4 plants, which should add an additional capacity of 19bn pcs pa upon completion of the expansion. We are positive on this development as we believe that this new expansion, NGC 1.5, will come in timely to bridge the gap between the completion of NGC 1.0’s expansion and the commissioning of NGC 2.0 in CY22. Reiterate Neutral on Hartalega, with an unchanged TP of RM21.70.

Top Glove (Trading Buy, TP: RM26.70): Still resolving US ban, remediation fee now at RM53m . Top Glove Corp is still finalising its total remediation fee to its foreign workers with the US Customers and Border Protection (CBP), currently estimated at RM53m. (The Edge)

AAX (Underperform, TP: RM0.01): Posts 38% passenger load factor in 2Q . AirAsia X (AAX) posted a passenger load factor (PLF) of 38% in 2Q20, carrying 2,291 passengers on the back of flights ferrying cargo with minimal passenger take-up during the month of April 2020. The company’s available seat kilometres reduced to 31m from 8.44bn during the quarter under review. (SunBiz)

AT Systematization: Sets up rubber glove plant. AT Systematization is commissioning six glove dipping lines for its new factory to the tune of RM36.15m. It will see one single former dipping line and five double former dipping lines. Consequently, it will see 928m pieces of rubber gloves per year. (The Edge)

Revenue: Acquires 40% of AI firm to enhance its e-payment solutions, technologies . Revenue Group is acquiring a 40% stake in artificial intelligence (AI) company Wannatalk Malaysia SB for RM5m cash, which will give it an opportunity to enhance its electronic payment (e-payment) solutions and technologies for banks, financial institutions, merchants and card issuers. (SunBiz)

HLT: To raise up to RM325m to fund expansion of glove making business . HLT Global aims to raise RM236.14m to RM324.68m through a private placement of 20% of its issued shares to build a new rubber glove manufacturing plant. About RM205m to RM300m of the proceeds will be used to partly finance land acquisitions, as well as factory construction and glove dipping lines for the plant. (The Edge)

Vizione: Makes first foray into renewable energy . Vizione Holdings has acquired a 75% stake in Tunjang Tenaga SB (TTSB) for RM150,085. SDF had on Dec 24, 2019 received feed in approval from the Sustainable Energy Development Authority (SEDA) to operate a small hydropower plant with an installed capacity of 9.6MW at Pedu Dam, Kedah for a period of 21 years. (Bernama)

Market Update

The FBM KLCI might open higher today after the S&P 500 booked its longest stretch of gains in about 16 months Monday, as investors monitored signs that a long-awaited rotation on Wall Street into more economically sensitive cyclical stocks could be brewing, but at the expense of their high-flying counterparts. Investors also focused on the significance of President Donald Trump’s weekend signing of executive orders extending some elements of coronavirus relief. The measures face likely legal hurdles and questions about their effectiveness, but the act may spur further talks among lawmakers. The Dow Jones Industrial Average closed 357.96 points higher, or 1.3%, to 27,791.44, booking its seventh straight day of gains. The S&P 500 added 9.19 points, or 0.3%, finishing at 3,360.47, within 1% of its Feb. 19 closing record of 3,386.15. The Nasdaq Composite retreated 42.63 points, or 0.4%, to end at 10,968.36. In Europe, the Stoxx Europe 600 index finished 0.3% higher, after advancing 2% last week, and the FTSE 100 also added 0.3%, following its 2.3% weekly advance.

Back home, the FBM KLCI pared some losses to close 6.48 points or 0.41% lower to 1,571.66 as profit taking was seen across glove counters. The benchmark index had earlier fallen to a low of 1,558.07. In Asia, China’s CSI 300 index ended trade up 0.4%, while Hong Kong’s Hang Seng Index closed 0.6% lower.

Source: PublicInvest Research - 11 Aug 2020

Share this

Related Stocks

Chart Stock Name Last Change Volume 
HARTA 14.52 -0.14 (0.95%) 920,700 
TOPGLOV 6.99 -0.06 (0.85%) 16,429,400 
AAX 0.065 0.00 (0.00%) 1,333,400 
AT 0.205 +0.005 (2.50%) 398,962,500 
REVENUE 1.23 -0.03 (2.38%) 1,104,700 
HLT 1.22 -0.04 (3.17%) 2,812,000 
VIZIONE 0.405 -0.005 (1.22%) 762,500 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program
 
 

350  465  656  992 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 AT 0.205+0.005 
 KANGER 0.185+0.005 
 KGROUP 0.060.00 
 ASIABIO-OR 0.010.00 
 MTRONIC 0.110.00 
 IRIS 0.35-0.005 
 FINTEC 0.11+0.015 
 PA 0.155+0.005 
 VIVOCOM 0.975+0.17 
 BIOHLDG 0.315+0.025 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!

TOP ARTICLES

1. Jaks Resources - Jaks Hai Duong Power Plant Achieved Commercial Operation Date (COD) !!! DK
2. Should we buy Top Glove since it has been plunging due its 28 factories shut down? Koon Yew Yin Koon Yew Yin's Blog
3. TOP GLOVE LOCKDOWN AND SUPERMAX SHARE PRICE The way I see it
4. Kelington Group Berhad ("KGB") - Above Expectations (TP: RM2.30; +35% upside) by Kenanga Research Investment Ideas - Value and Growth
5. VIVOCOM: End of Day Report (26 Nov 2020) See Jovin
6. 【Growth成长股】AWC Berhad (7579) – Benefit from Strong Order Book Amounted Close to RM1Bil Sanitize and Disinfection Healthcare Stocks
7. Top Glove’s 28 factories shut down should benefit other glove makers - Koon Yew Yin Koon Yew Yin's Blog
8. TOP 10 INTERESTING STOCKS WITH COMMENTS BY CALVIN TAN RESEARCH THE INVESTMENT APPROACH OF CALVIN TAN
PARTNERS & BROKERS