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...
Global markets ended the week on a strong note with significant stock gains and declining US Treasury yields, as investors brace for President-elect Donald Trump's policies, which are expected to include tariffs, tax cuts, and deregulation. Meanwhile, Bitcoin surged near the historic US$100,000 mark.
Market Highlights
US Stocks
- Wall Street Performance:
- Dow Jones: +0.97% to 44,296.51
- S&P 500: +0.35% to 5,969.34
- Nasdaq Composite: +0.16% to 19,003.65
- Sector Movements: Gains were led by industrials, consumer discretionary, financials, and consumer staples, while communication services, utilities, and technology saw losses.
- Key Stock Movement: Nvidia fell 3.2% despite strong earnings due to disappointing sales forecasts.
Global Indices
- Europe: The Stoxx 600 gained 1%, snapping a four-week losing streak.
- MSCI Global Stocks: Up 0.33% to 854.22, with a weekly gain of 1.4%.
Treasury and Currency Markets
- US Yields: The benchmark 10-year Treasury yield slipped 1.4 basis points to 4.418% as markets reassess future Fed rate cuts amidst potentially inflationary Trump policies.
- Fed Rate Cut Odds: A 53% probability of a 25-basis-point rate cut in December.
- Dollar Gains: The dollar index rose 0.43% to 107.52, while the euro dropped to a two-year low of US$1.0414 after weak eurozone manufacturing data.
Commodities
- Bitcoin: Climbed 1.33% to US$99,384, driven by optimism about Trump’s lighter regulatory approach.
- Oil:
- Brent Crude: +1.3% to US$75.17
- WTI Crude: +1.6% to US$71.24
- Gains fueled by the intensifying Russia-Ukraine conflict.
- Gold:
- Spot gold rose 1.37% to US$2,706.39, marking its highest price in two weeks and its biggest weekly gain in over a year.
Economic Data
- US Manufacturing: S&P Global’s US manufacturing gauge rose to 55.3, the highest since April 2022, signaling robust economic activity.
- Eurozone Manufacturing: Fell to a 10-month low of 48.1, reflecting continued economic struggles.
Outlook
Markets are closely monitoring Trump’s policy appointments and potential fiscal moves, including his Treasury secretary pick. While optimism remains high, risks such as inflation resurgence, tariffs, and geopolitical tensions could impact investor sentiment in the weeks ahead.
Conclusion: A strong week for stocks and commodities reflects investor optimism about growth under the incoming Trump administration, even as uncertainties loom over inflation and policy decisions.
Comments
Post a Comment