MONEY MASTER

The Department of Statistics Malaysia (DOSM) reported that the manufacturing sector's gross output value surged to RM1.89 trillion in 2022, reflecting a 7.5% annual increase since 2015. This significant growth was primarily driven by the petroleum, chemical, rubber, and plastic products sub-sector, which saw an increase from RM299.1 billion in 2015 to RM579.6 billion in 2022. Key Takeaways: Overall Growth: Gross output value in the manufacturing sector grew by 7.5% annually to reach RM1.89 trillion in 2022. The petroleum, chemical, rubber, and plastic products sub-sector was a major contributor, growing to RM579.6 billion. Sub-Sector Performance: The electrical, electronic, and optical products sub-sector saw a 29.6% share, increasing to RM560.7 billion from RM321.18 billion in 2015. These sub-sectors benefited from heightened global demand for medical supplies and electronic devices during the Covid-19 pandemic. Manufacturing Establishments: The number of manufacturing establishme

Lotte Chemical Titan Holding Bhd (KL) reported its ninth consecutive quarterly loss with a narrower net loss of RM248.9 million for the second quarter ended June 30, 2024 (2QFY2024), compared to RM313.5 million in the same period last year (2QFY2023). Key Points: Ninth Consecutive Loss: The company continues to struggle, posting another quarterly loss, though the deficit has narrowed from the previous year. Financial Performance: Net Loss: RM248.9 million, down from RM313.5 million in 2QFY2023. Loss Per Share: Dropped to 10.93 sen from 13.76 sen. Revenue: Decreased by 4.3% to RM1.78 billion from RM1.86 billion due to lower sales volume from scheduled statutory maintenance, partially offset by the appreciation of the US dollar and higher average selling prices. LBITDA: Loss before interest, taxes, depreciation, and amortization fell 41% to RM155.6 million from RM261.8 million. Six-Month Performance (6MFY2024): Net Loss: Reduced to RM426.9 million from RM538.2 million in 6MFY2023.

  Microsoft Corp’s Azure cloud-computing service reported slower quarterly growth, disappointing investors eager for returns from the company’s substantial investments in artificial intelligence (AI) products. Key Takeaways: Slowing Growth in Azure : Azure's revenue grew by 29% in the fiscal fourth quarter, down from a 31% rise in the previous quarter. AI contributed eight percentage points to this growth, up from seven in the prior period. Impact on Shares : Microsoft’s shares fell about 3% in premarket trading on Wednesday following the announcement. AI Investments and Challenges : CEO Satya Nadella has integrated AI technology from OpenAI into Microsoft’s products, including digital assistants called Copilots. However, corporate customers are just starting to adopt these AI assistants, which still face some challenges. Capital Expenditures : Capital expenditures jumped to $19 billion in the fourth quarter, up from $14 billion in the previous quarter, as Microsoft invests heavily

  Citigroup has repeatedly violated a US Federal Reserve rule that limits intercompany transactions, resulting in errors in its internal liquidity reporting, according to a Citi document from December reviewed by Reuters. This is the first time these infractions are being reported. Regulation W Infractions Under Regulation W, banks must restrict transactions like loans to the affiliates they control to protect depositors whose money is insured up to $250,000 by the government. These breaches have occurred as Citi works to address separate issues in its risk management and internal controls, which regulators criticized as "unsafe and unsound" in 2020. Citi was also rebuked over its counterparty risk measurements in 2023 and fined $136 million this year for insufficient progress on compliance. The firm's response to the breaches led to inaccuracies in liquidity reporting, highlighting weaknesses in Citi's ability to identify, monitor, and prevent future Regulation W vio

KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia bounced back from yesterday’s losses to end higher today in sync with the upbeat performance in the regional markets.  At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.63 points or 0.85 per cent to 1,625.57 from yesterday's close of 1,611.94. The FBM KLCI opened 1.39 points higher at 1,613.33 and moved between 1,611.60 and 1,627.94 throughout the day. On the broader market, losers thumped gainers 602 to 480, with 494 counters unchanged, 873 untraded, and 54 others suspended. Turnover increased to 4.42 billion units worth RM3.62 billion from yesterday's 4.19 billion units worth RM3.11 billion. UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the FBM KLCI closed higher today despite mixed reactions to the Bank of Japan's (BoJ) hawkish decision and contrasting results from tech bellwether Microsoft and chipmaker Advanced Mi

  Kuwait Finance House (Malaysia) Bhd (KFH Malaysia), the first foreign Islamic lender in the country, is planning to exit Malaysia after nearly two decades of operations, according to industry sources. Strategic Refocus “It is exiting to focus entirely on the Middle East,” an industry source said. KFH Malaysia is wholly owned by Kuwait Finance House, the largest bank in Kuwait and the second-largest Islamic bank globally. Earlier this year, Kuwait Finance House merged with Ahli United Bank of Kuwait. Limited Presence in Asia Apart from Malaysia, Kuwait Finance House does not have a presence elsewhere in Asia. The group was not immediately available for comment. KFH Malaysia is one of only two remaining stand-alone foreign Islamic banks in the country, the other being Al Rajhi Banking & Investment Corp (Malaysia) Bhd. The bank has faced challenges in gaining market share in Malaysia's competitive market since its establishment in August 2005. Currently, there are 17 Islamic len

  The UK government has confirmed a record allocation of £1.5 billion (US$1.9 billion or RM8.87 billion) to support new renewable power capacity in an upcoming auction, marking a significant step towards eliminating carbon emissions from its power grid. Key Allocations and Objectives The increased budget includes £1.1 billion specifically for offshore wind farms, as initially reported by Bloomberg News. This move follows a previous auction that failed to attract bidders due to the low guaranteed power price. “This will restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect bill payers, and become a clean energy superpower,” stated Energy Secretary Ed Miliband. Strategic Importance The higher budget aims to kickstart projects that require several years to complete. The UK's newly elected administration has set an ambitious target to achieve a zero-carbon power grid by 2030. The previous government had

Italian premium brake maker Brembo has posted moderate gains in first-half core earnings and revenue, thanks to strong performance in its Asian markets and robust business from maintaining older vehicles. This has helped counter a generally weak outlook for the automotive sector. Resilience Amidst Industry Contraction The automotive market faced a contraction in the first part of the year, with several major automakers, including Stellantis, Porsche, and Mercedes, reporting lower earnings. The recovery remains uncertain for the months ahead. "The market is really struggling, including in its premium segment," said Executive Chairman Matteo Tiraboschi in a post-earnings interview with Reuters. "With this background, increasing revenue and preserving profitability was an achievement." Financial Highlights EBITDA Growth: Brembo's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 2.1% to €351.4 million ($381 million) for the six

  theedgemalaysia.com has identified six stocks with notable momentum on Bursa Malaysia as of the noon market break on Wednesday. Positive Momentum Stocks Optimax Holdings Bhd (KL ) Price Movement: Up four sen or 5.88% at 72 sen Description: Optimax Holdings Bhd specializes in eye specialist services. Betamek Bhd (KL ) Price Movement: Up 3.5 sen or 8.33% at 45 sen Description: Betamek Bhd is involved in the manufacturing and supply of electronic products for the automotive industry. Velocity Capital Partner Bhd (KL ) Price Movement: Down half a sen or 6.67% at seven sen Description: Velocity Capital Partner Bhd operates in the financial and investment sector. Negative Momentum Stocks Oceancash Pacific Bhd (KL ) Price Movement: Up 1.5 sen or 3.53% at 44 sen Description: Oceancash Pacific Bhd produces and distributes felt and nonwoven fabrics primarily for the automotive industry. Kim Loong Resources Bhd (KL ) Price Movement: Up nine sen or 3.90% at RM2.40 Description: Kim Loon

The liquidators of three companies involved in the nickel scandal allegedly orchestrated by Ng Yu Zhi are seeking a court order to recover about S$855 million (US$637 million) from Ng and three other individuals, the Straits Times reported. Key Details Defendants: Ng Yu Zhi, former directors Lee Si Ye and Ju Xiao, and former employee Cheong Ming Feng. Legal Action: The liquidators of Envy Global Trading, Envy Asset Management, and Envy Management Holdings filed a lawsuit in November 2021 to recoup investors' funds. Civil Trial: The trial commenced on July 30 at Singapore’s High Court. Ng, currently in remand, did not attend the trial. Background Allegations: Ng Yu Zhi is accused of raising funds from investors for fictitious nickel trades. In 2021, Bloomberg reported that hundreds of investors had invested in the purported US$1.1 billion scheme linked to Ng’s Envy Group, which promised average quarterly gains of 15%. Investor Impact: The scheme attracted significant investment

President Xi Jinping's administration is under intensifying pressure to address the downturn in China's consumer spending, which has emerged as a significant threat to global economic stability. Alarming Economic Indicators Services Activity: A critical gauge of Chinese services activity, covering the retail sector, teetered on the edge of contraction in July for the first time since last year. This is part of a broader disappointing economic picture revealed by recent purchasing manager indexes. Deflationary Pressures: Persistent deflationary pressures are evident, not just in manufacturing but across various sectors. Impact on Global Brands Consumption's Role: For the first time since late 2022, consumption contributed less than half to China’s US$17 trillion economy in the second quarter. Affected Brands: The consumer spending slump has hit global brands like Starbucks, L'Oréal, and Japan's Fast Retailing, leading to declining sales and stock valuations. Econ

  India's Adani Group is exploring potential investments in two major airports in Vietnam, as announced by the Vietnamese government on Wednesday. This development follows the company's recent approval to construct a seaport in the country. The announcement came after a meeting in Delhi between Vietnamese Prime Minister Pham Minh Chinh and Gautam Adani, the head of the Adani Group, during Chinh's official visit to India. Potential Investment Targets Long Thanh Airport: Located in the southern region of Vietnam, this is one of the country's most significant aviation projects. Chu Lai Airport: Situated in the central region, it serves as another critical infrastructure hub. Previous Commitments and Future Prospects Seaport and Renewable Energy: Last year, Karan Adani, Gautam Adani's elder son, announced plans to invest up to US$3 billion in Vietnam's seaport and renewable energy sectors. He also mentioned that the total investment could potentially reach US$10

  Great Eastern Holdings has reported a 34% year-on-year increase in profit attributable to shareholders, reaching S$587.1 million (RM2.02 billion) for the first half ended June 30, 2024 (1HFY2024). This growth was driven by higher profits from the insurance business and favorable investment performance of the shareholders’ fund. Key Drivers Insurance Business: The company's life business contributed significantly with higher contract service margins and risk adjustment releases. Investment Performance: A favorable investment environment positively impacted the performance of the shareholders' fund, contributing to the overall profit growth. Detailed Financial Performance Life Business: The increased contract service margin and risk adjustment release indicate improved operational efficiency and effective risk management within the life insurance segment. Great Eastern Holdings' robust performance in the first half of 2024 underscores its strategic focus on enhancing pro

The Biden administration is set to announce a new rule next month that will expand the United States' authority to restrict exports of semiconductor manufacturing equipment to China from certain foreign countries, according to sources familiar with the matter. However, the rule will exempt key allies that export crucial chipmaking equipment, such as Japan, the Netherlands, and South Korea, thereby limiting the overall impact. Major equipment manufacturers like ASML and Tokyo Electron will remain unaffected. Rule Details and Scope The new rule, an extension of the Foreign Direct Product rule, aims to prevent approximately half a dozen Chinese fabs involved in advanced chipmaking from receiving exports from numerous countries. Nations affected by the rule include Israel, Taiwan, Singapore, and Malaysia. Specific Chinese fabs to be impacted were not disclosed. A spokesperson for the US Commerce Department, which manages export controls, declined to comment. Strategic Objectives The ru

  Avillion Bhd’s (KL) external auditor has expressed material uncertainty about the hotel and travel company’s ability to continue as a going concern. Messrs Baker Tilly Monteiro Heng PLT highlighted a net loss of RM5.55 million at the group level and RM6.81 million at the company level for the financial year ended March 31, 2024 (FY2024), despite Avillion’s hospitality and travel businesses operating at full capacity. This situation indicates “the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern,” according to the auditor. However, the auditor clarified that “our opinion is not modified in respect of this matter.” Going Concern Explained: “Going concern” is an auditing term that indicates a company has sufficient resources to continue operating in the foreseeable future. An auditor may issue a going concern warning if there are significant doubts about the company’s ability to continue opera

  Emerging Asian currencies and stocks saw gains on Wednesday as investors anticipated the US Federal Reserve’s policy decision later in the day. Meanwhile, the yen experienced volatility following the Bank of Japan’s (BOJ) rate hike. Key Points: Currency Movements: The South Korean won and the Thai baht led currency gains, rising by 0.6% and 0.5% respectively. Other Asian currencies like the Singaporean dollar, Philippine peso, and Malaysian ringgit traded flat to 0.3% higher. US Federal Reserve Decision: Investors are keenly awaiting the Fed’s decision, with markets largely expecting the central bank to maintain current interest rates. There is significant attention on any commentary regarding a potential rate cut in September. Bank of Japan’s Rate Hike: The BOJ raised its short-term interest rate target to 0.25% and outlined a plan for quantitative tightening. This decision caused the yen to fluctuate, initially pushing it to its highest in a week before it pared gains. Market React

Malaysia’s gross loan growth remained steady in June, bolstered by an increase in business borrowings which offset a slowdown in consumer lending and corporate bonds, according to data from Bank Negara Malaysia (BNM) released on Wednesday. Key Points: Overall Loan Growth: Credit to the private non-financial sector expanded by 5.4% year-on-year in June, maintaining the same growth rate as in May. Business Loans: Outstanding business loans increased by 5.6% in June, up from 4.8% in May. This growth was driven by loans for working capital and investment-related purposes. Significant loan growth was noted in the construction and services sectors. Household Loans: Outstanding household loan growth slightly decreased to 6.2% from May’s rate of 6.3%. Corporate Bonds: Growth in outstanding corporate bonds slowed to 3.4% from May’s 4%. Loan and Bond Data: The data includes loans to households and non-financial corporations from the banking system and development financial institutions. It also

  The Japanese government has issued a corrective order to Toyota Motor Corp after discovering new violations in the company's vehicle certification procedures. The transport ministry's on-site inspections revealed widespread, intentional misconduct and irregularities in seven additional models that had not been previously disclosed. This follows earlier revelations in June. Key Points: Newly Discovered Violations: The ministry's inspections uncovered irregularities in the certification of seven more models. These issues involve both currently produced and discontinued models. Toyota's Response: Toyota has acknowledged the corrective order and stated it will "make drastic reforms to ensure appropriate certification operations." Previous Admissions: Earlier this month, Toyota had claimed no new cases of wrongdoing beyond those reported in June. In June, Toyota and four other automakers admitted to submitting flawed or manipulated data for vehicle certification.

The Malaysian ringgit is showing strong signs of recovery, driven by robust economic growth and expectations of an imminent interest rate cut by the Federal Reserve (Fed). After hitting a 26-year low in February, the ringgit is now less than 1% away from recovering its losses for the year. Oversea-Chinese Banking Corp predicts that the ringgit will appreciate to 4.60 per dollar by mid-2025. As of early Wednesday, the local currency rose 0.2% against the US dollar. Factors Supporting the Ringgit's Rebound: State Support and Currency Measures: Bank Negara Malaysia has encouraged state-linked firms to repatriate and convert foreign income. The central bank has utilized forwards to support the ringgit. Global Technology Cycle: An upturn in the global technology cycle is aiding the recovery of Malaysian exports. Yield Differential Dynamics: The Fed's anticipated rate cut is expected to narrow the record discount to the US, making ringgit-denominated assets more attractive to dollar-

  Asian stocks surged on Wednesday, and the yen experienced volatility after the Bank of Japan (BOJ) raised interest rates. Investors also digested mixed results from tech giants Microsoft and AMD, highlighting differing impacts within the AI sector. Key Points: BOJ Rate Hike: The BOJ increased its overnight call rate target to 0.25% from 0%-0.1%. It also announced a quantitative tightening plan to reduce monthly bond buying to ¥3 trillion by early 2026. Market Reaction: Japan's Nikkei index saw choppy trading, ending down 0.19%. Japanese government bond yields fell slightly post-decision. The yen fluctuated but remained flat at 152.81 per dollar, marking over a 5% gain in July. MSCI's Asia-Pacific index outside Japan rose 0.9%. Chinese blue-chip stocks and Hong Kong’s Hang Seng index both increased by about 2%. Influences on the Market: Oil Prices: Rose from seven-week lows due to Middle Eastern tensions after Hamas reported the killing of its leader Ismail Haniyeh in Tehran

  The S&P 500 and Nasdaq closed lower on Tuesday, weighed down by weak performances in chip and megacap shares ahead of significant tech earnings reports this week. In contrast, the Dow Jones Industrial Average managed modest gains. Key Points: Microsoft Decline: Microsoft, a leader in artificial intelligence, fell 0.89% to US$422.92 ahead of its quarterly results. Post-closing bell, the company’s shares dropped about 5% after reporting slower-than-expected growth in its Azure cloud-computing service. Nvidia Slump: Nvidia, a major beneficiary of potential AI growth and the year’s second-best S&P 500 performer, tumbled 7.04% to US$103.73, dragging other chip stocks down and causing the Philadelphia semiconductor index to fall 3.88%. Tech Earnings: Other major tech companies, including Apple, Amazon, and Meta Platforms, are set to report earnings this week. Apple edged up 0.26% to US$218.80, while Amazon slipped 0.81% to US$181.71, and Meta dropped 0.54% to US$463.19 due to va

Intel Corp plans to eliminate thousands of jobs to reduce costs and fund an ambitious effort to rebound from an earnings slump and market share losses. Key Points: Job Reductions: The workforce reduction may be announced as early as this week, targeting Intel's 110,000 employees, excluding workers at units that are being spun out. Earnings and Market Share: Intel aims to address its earnings slump and market share losses under CEO Pat Gelsinger, who is investing heavily in research and development to improve Intel’s technology. Competitive Landscape: Intel's rivals, including Advanced Micro Devices Inc and Nvidia Corp, have gained market share, particularly in AI-related semiconductors. Intel is also dealing with fluctuating demand for chips used in laptops and desktop computers. Strategic Shifts: Gelsinger has initiated plans to build factories for manufacturing semiconductors for other chipmakers. Recently, Intel hired Naga Chandrasekaran from Micron Technology Inc as chi

  New British finance minister Rachel Reeves has announced the need to raise taxes in her upcoming October 30 budget, confirming the anticipated move following a recent revelation of a £22 billion (RM130.41 billion) budget shortfall. Key Points: Tax Increase Announcement: Reeves stated the necessity of tax hikes during an interview with The News Agents podcast, marking her first explicit confirmation of the move since assuming office after the Labour Party's election victory on July 4. Budget Shortfall: Earlier this week, Reeves highlighted a £22 billion shortfall in this year's budget, necessitating difficult decisions. Tax Details: While specifics on which taxes will be raised were not disclosed, Reeves reiterated her commitment to not increase rates on income tax, National Insurance, value-added tax, and corporation tax. Spending Cuts: The announcement of tax increases follows £13.5 billion in spending cuts over the next two years, revealed on Monday. Reeves attributed t

Moody's has placed Britain's Southern Water on a warning for a "junk" rating downgrade, just days after stripping Thames Water of its investment-grade status. Key Points: Moody's Concerns: The rating agency cited UK regulator Ofwat's draft decision to limit customer bill increases and Southern Water's looming fines as primary concerns. Current Rating: Southern Water currently holds a Baa3 rating, the lowest investment-grade rung. Regulatory Decision: Ofwat's draft determination prevents Southern from raising bills as much as requested, impacting its investment program funding. Fines and Penalties: Southern Water faces substantial fines, including at least £35 million in "Outcome Delivery Incentive" penalties, with potential ongoing annual fines of £19 million to £60 million if improvements are not made. Pollution Reduction: Southern Water is mandated to reduce pollution incidents by 81%, significantly more than other water companies, whi

Starbucks' operational improvements helped the coffee giant meet Wall Street expectations for quarterly profit, even as global sales declined due to persistent weakness in consumer spending in its key markets, the US and China. Key Highlights: Quarterly Profit: Profit of 93 cents per share met LSEG estimates. Operational Efficiency: Starbucks rolled out the Siren System plan, updating equipment to increase service pace, deployed across US-operated stores. The company aims to have the system in less than 10% of global stores by year-end. Operating Margin: Fell by 70 basis points in the third quarter, a sequentially smaller drop. New Store Openings: Opened 526 new stores in the quarter. Market Reaction: Starbucks' shares, down 22% this year, rose 5% in extended trading after executives reaffirmed annual forecasts. Consumer Strategies: In response to cost-conscious consumers, Starbucks introduced discounts and promotions, including a coffee or tea paired with a butter croissan

French supermarket group Casino posted a decline in first-half core earnings due to ongoing restructuring activities, including the sale of hypermarkets and supermarkets, store closures, and conversions to franchises. Key Highlights: Earnings Decline: Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell 24% to €255 million (RM1.27 billion) in the six months ending June. Sales Drop: Net sales decreased by 3.5% to €4.2 billion. Debt Reduction: Net debt reduced to €1 billion at the end of June from €1.6 billion at the end of March 2024 and €6.2 billion at the end of 2023. Free Cash Outflow: The company reported a free cash outflow before financial expenses of €413 million, compared to an outflow of €735 million a year ago. Restructuring Efforts: Casino, France's seventh-largest supermarket group by market share, has been attempting a turnaround after years of debt-fueled acquisitions and a declining market share. The company has been implementing

  Samsung Electronics forecasts robust artificial intelligence (AI)-driven demand for chips in the latter half of 2024, attributing a significant surge in second-quarter operating profit to rising semiconductor prices. "In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments," Samsung stated. Rebounding semiconductor prices, fueled by the AI boom, significantly boosted June quarter earnings for the world's largest producer of memory chips, smartphones, and TVs from a low base last year. Key Highlights: Share Price: Samsung's share price increased by 0.9% in morning trade, compared to a 0.5% rise in the benchmark index. Operating Profit: Rose to 10.4 trillion won (RM33.42 billion) in April-June, a dramatic rise from 670 billion won a year earlier, marking Samsung's highest operating profit since Q3 2022. Chip Division: Reported a profit of