The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
Markets at a Glance
- S&P 500 Index (.SPX.US): +0.35% to 5,969.34
- Dow Jones Industrial Average (.DJI.US): +0.97% to 44,296.51
- Nasdaq Composite Index (.IXIC.US): +0.16% to 19,003.65
The market gained on Friday, driven by positive sentiment following Nvidia earnings and Bitcoin’s approach to an all-time high.
Macroeconomic Highlights
- US PMI Data:
- Composite PMI: Rose to 55.3, a two-year high.
- Services PMI: Climbed to 57, the highest since March 2022.
- Manufacturing PMI: Declined slightly to 48.8, indicating contraction.
- Michigan Consumer Sentiment: Lower than last month, with one-year inflation expectations holding steady at 2.6%.
Sector Performance
- Department Stores: Macy’s (M.US) surged 6%, amid speculation of M&A activity under a more lenient Trump administration. Earnings are due next week on Nov. 26.
- Energy:
- Crude Oil Futures (CLmain.US): Climbed above $70, fueled by escalating tensions in the Russia-Ukraine conflict and a slight increase in US oil rigs.
- Baker Hughes reported 583 active oil and gas rigs, down from 622 a year ago.
Top Movers
Biggest Gainers
- Super Micro Computer (SMCI.US):
- +22% after announcing plans to file its delayed 10-K with a new auditor, BDO USA, and requesting an extension on the Nasdaq exchange.
- Replimune (REPL.US):
- +44% intraday after submitting a melanoma treatment for FDA Accelerated Approval Pathway.
- SoundHound AI (SOUN.US):
- +20% following the deployment of its AI agent, Amelia, managing over 100,000 customer calls for an insurance client.
- Copart (CPRT.US):
- +8% after Q1 earnings revealed 12% revenue growth and a profit of $362.1M.
- Moderna (MRNA.US):
- +7% on optimistic comments regarding its pipeline and financial stability during a healthcare conference.
Biggest Losers
- Reddit (RDDT.US):
- -7.6% after reports that Advance Magazine Publishers plans to establish a credit facility using its stake in the company.
Commodities and Crypto
- Bitcoin (BTC.CC): Reached an all-time high of $99,800 before retreating.
- Oil Prices:
- Brent Crude: +1.3% to $75.17/barrel.
- WTI Crude: +1.6% to $71.24/barrel.
- Gold and Silver: Gold breached $2,700/oz, marking its biggest weekly gain in over a year.
Market Sentiment and Outlook
Markets are reacting positively to macroeconomic data and company-specific catalysts, but risks remain, including geopolitical tensions, inflation concerns, and upcoming earnings reports. Traders are also closely monitoring how Trump’s administration may shape fiscal and regulatory policies.
With Bitcoin near record highs and optimism surrounding AI and energy sectors, investors are balancing opportunities with caution amid a dynamic market landscape.
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