2014年9月9日星期二

PublicInvest Research Headlines - 9 Sep 2014


Author: PublicInvest   |   Publish date: Tue, 9 Sep 10:16

Economy

US: Consumer credit surges on more loans for automobiles. Consumer borrowing in the US rose more than forecast in July as non-revolving loans including those for cars climbed by the most in three years. The USD26bn increase in credit and exceeded the highest forecast in a Bloomberg survey and followed an USD18.8bn advance in June that was more than previously estimated, a report from the Federal Reserve in Washington showed. Non- revolving loans, which include borrowing for autos and college tuition, climbed USD20.6bn, the biggest gain since July 2011. (Bloomberg)
US: Yellen seeks better ties as Congress steps up scrutiny. Federal Reserve Chair Janet Yellen has tried to repair damaged relations with Congress during her first seven months in office. The fix-up isn’t going very well. Republicans on the House Financial Services Committee started the year promising a series of inquiries into the nation’s central bank. New legislation aimed at reducing the Fed’s discretion on monetary policy and bank supervision has been proposed. (Bloomberg)
US: Fed research shows investors underestimate path of rate rise. Low volatility across financial markets may signal investors are underestimating how quickly the Federal Reserve will raise interest rates, according to researchers at the San Francisco Fed. Data also suggest that the public is “less uncertain about their projections.” Fed officials in their June economic forecasts predicted their target interest rate will be 1.13% at the end of 2015 and 2.5% a year later. (Bloomberg)
EU: Constancio says ECB has further tools it can use. The ECB has not run out of ammunition and can use further tools, but to revive euro zone growth governments should do their share, ECB Vice President Vitor Constancio said. The ECB cut interest rates almost to zero last week and launched a new program to buy asset-backed securities on top of the four-year loans it will offer banks in Sep to boost lending and revive the economy. But the ECB can still do more if needed, Constancio said. (Reuters)
EU: Slows new Russia sanctions as it gauges Ukraine truce. European Union governments abruptly put on hold for at least a “few days” new sanctions against Russia, allowing more time to assess the viability of a cease-fire in Ukraine without risking further trade retaliation by the Kremlin. The EU’s second package of economic penalties against Russia was delayed in Brussels by the bloc’s 28 governments, which approved the measures in principle while stopping short of giving the green light for their publication in the Official Journal and entry into force. (Bloomberg)
China: Posts record surplus as exports-imports diverge. China’s trade surplus climbed to a record in Aug as exports rose on the back of increased shipments to the US and Europe, while imports fell for a second month as a property slump hurt domestic demand. Exports increased 9.4% from a year earlier, the customs administration said, compared with the 9% median estimate in a Bloomberg survey. Imports unexpectedly dropped 2.4%, leaving a trade surplus of USD49.8bn.

Markets

UMW-OG: Secures USD46.5m charter contract for Naga 6. UMW Oil & Gas Corp (UMW-OG) has secured a USD46.5m (RM147.6m) charter contract in Vietnam for its newest rig, UMW Naga 6. UMWOG said that its unit had received a letter of award from Petrovietnam Drilling & Well Services Corp for the provision of a jack-up drilling rig and other services for associated end clients, PC Vietnam Ltd and Petronas Carigali Overseas SB. The contract is for four firm wells (c.250 days), with three optional wells (c.55 days) and thereafter, an extension option of three wells (c. 277 days). The contract is expected to commence early next month soon after the Group takes delivery of Naga 6 later this month. (Financial Daily)
KKB: Bags RM14.5m fabrication contract. KKB Engineering’s associate company OceanMight SB has bagged a RM14.5m contract, its first fabrication job since the company obtained an offshore fabrication license from Petroliam Nasional (Petronas). KKB said that OceanMight has received a letter of award from 2H Offshore Engineering SB, a US-based subsidiary of Acteon, an international oil and gas service provider. This is the provision of fabrication, hook-up and commissioning services for the Tanjongn Baram wellhead platform. The commencement period of the contract will be in Sept, and the completion of the fabrication is scheduled for March 2015. (Financial Daily)
Ho Hup Construction: Forms JV for RM634.8m Myanmar residential project. Ho Hup Construction Co’s unit has entered into a JV with Zaykabar Co Ltd to develop a high-end residential property project, with an estimated GDV of USD200m (RM634.8m) in Yangon, Myanmar. Ho Hup said that under the JV agreement signed yesterday, its 70%-owned subsidiary Ho Hup (Myanmar) E&C Co Ltd had secured the sole and exclusive right to develop 191 units of villas and bungalows in Mingalardon Garden City (191 Z Villas) for the project. Under the tie-up, Zaykabar would grant Ho Hup Myanmar the sole and exclusive right to develop the Z Villas 191 Units land into residential units in accordance with approved layout plans, which consist of 191 units of villas/bungalows, measuring about 10,000 sq ft each and with a built-up area of about 5,000 sq ft each, Ho Hup said. (StarBiz)
Pantech: To invest RM50m over next two years. Pantech Group Holdings will invest RM50m over the next two years to further strengthen itself as a leading solution provider for the fluid transmission system. Executive chairman and group MD Datuk Jimmy Chew said the allocation would able the company to increase its production capacity and offer more products for the oil and gas (O&G) industry. He said the money would be used to purchase new equipment, adding that the company planned to go into production of high yield products in the near future. (StarBiz)
Eversendai: Clinches maiden RM72.2m O&G job. Eversendai Corp has bagged its maiden oil and gas (O&G) contract in Malaysia for two separate packages valued at RM72.2m. The company said its unit – Eversendai Oil & Gas (M) SB, a local engineering, procurement, construction and commissioning company – had secured the mechanical and steel structure packages contract for Petronas Carigali SB’s Terengganu Gas Terminal Project - Phase 2. The contract, which was awarded to Eversendai by Samsung Engineering (M) SB, is scheduled to start in the 3Q of this year and due for be completed by April 2016. (StarBiz)

MARKET UPDATE

Are investors finally coming to their senses, and finally realizing that there’s a major disconnect between not-so-great economic conditions globally and record-high equity markets? Probably not for the short to medium term considering the European Central Bank may embark on “money-printing” just when the US Federal Reserve is about to end its, flushing the system with another round of cheap liquidity. But markets did weaken on either side of the Atlantic however, with the Dow Jones Industrial Average and S&P 500 slipping 0.2% and 0.3% respectively on account of oil prices declining and lowering the share prices of energy-related stocks in the process. On the economic front, data showed consumer borrowing in the country rising more than anticipated in July as non-revolving loans including those for cars climbed by the most in three years, further signs that the stronger jobs market and rising home values are bolstering consumer confidence to spend again.
European equities declined as investors reportedly paused to contemplate on valuations which had become seemingly rich following recent months’ rapid rise. UK’s FTSE 100 fell 0.3% as concerns over Scotland’s possible vote for independence continued to be an overhang. Germany’s DAX inched up a notch however, up by 0.1%, as the country’s exports rose above EUR100bn for the first time in July and its trade surplus climbing to an all-time high. Elsewhere, Italy, Spain and France’s benchmarks fell 0.5%, 0.4% and 0.3% respectively.
Most Asian markets closed higher for the day however as China’s exports (+9.4% year-on-year in August) exceeded forecasts though there was also an unexpected drop in its imports (-2.4% year-on-year). India and Indonesia’s indices rose 1.1% and 0.6% while our FBM KLCI gained 0.1%. Both the Hang Seng Index and Straits Times Index slipped 0.2%. Markets in China, Taiwan and South Korea were closed for the mid-autumn festival holiday yesterday.
The market was fairly abuzz with activity yesterday, with announcements by Pelaburan Mara Berhad regarding its disposal of a 14.7% equity interest in PDZ Holdings for 35.5sen per share and registering close to a 100% gain versus its reported purchase price of 18sen just about 5 months ago, and by Eversendai Corporation securing an RM72.2m contract from Samsung Engineering for mechanical and steel structure packages for Petronas’ Terengganu Gas Terminal. There were also announcements by UMW Oil and Gas on the securing of an USD46.5m contract from Petrovietnam Drilling & Well Services Corporation for the provision of drilling rig services and where the new UMW Naga 6 will deployed, and by KKB Engineering on the securing of an RM14.5m contract through an associate company for fabrication, hook-up and commissioning services for the Tanjong Baram Wellhead Platform. Moving away from the oil and gas sector, Ho Hup Construction said that it will be developing a high-end residential project with an estimated gross development value of USD200m in Myanmar, with its primary role being to provide technical expertise in design, construction and project management. It will not invest in the development land. Slowly but surely, this “once-darling” of the construction industry (so synonymous with the boom in the 90s but had seen tougher times in recent years) seems to be finding its footing again and making a comeback
Source: PublicInvest Research - 9 Sep 2014

Crude palm oil futures gain 0.66 per cent on spot demand

没有评论:

发表评论