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Tourism: Mixed start to the year but may ramp up still
Chew Hann Wong | | | | |
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| | | MACRO RESEARCH | | | | | | Tourism: Mixed start to the year but may ramp up still
by Chew Hann Wong |
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| | | | | | 4M18 total visitor arrivals ex-Singaporeans grew 10% YoY driven largely by more Chinese visitor arrivals which surged 37% YoY. Recent flight bookings also indicate continued YoY growth in Chinese visitor arrivals. On the ground, we understand that inbound travel agents are experiencing brisk business due to the 'tax holiday' from 1 Jun to 31 Aug 2018. We are BUYers of AirAsia, AirAsiaX, Genting, Genting Malaysia, Atlan Holdings, IGB REIT, Sunway REIT, Yong Tai and YTL Hospitality REIT. | |
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| | | | | | FBMMES Index: Recovery in Progress
by Nik Ihsan Raja Abdullah |
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| | | | | | FBMKLCI rose for the second day after closing 4.97pts higher at 1,762.93 yesterday, in line with regional markets. Advancers were led by SIMEPLT, PPB and AXIATA. Broader market was positive with gainers outpacing losers by 574 to 383. A total of 3.35b shares worth MYR2.68b changed hands. Market is set to extend its gains today as sentiment could be boosted by firmer overnight US markets as well as China's move to shore up growth. Expect rotational buying on second and third liners. | |
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| NEWS | | | Outside Malaysia:
E.U: Euro-area growth slows as trade fears mount. Growth in the region softened in July on weaker new orders and deteriorating confidence, according to a survey published. More worryingly, companies reported rising prices for raw materials, delivery delays and shortages, suggesting that tariffs -- or the threat thereof -- are already starting to disrupt global supply chains. The report from IHS Markit comes just days after a meeting of central bankers and finance ministers from the Group of 20 nations. They said that trade tensions are threatening global growth, echoing multiple warnings since U.S. President Donald Trump started a tit-for-tat tariff battle with China and the European Union. The euro-area composite Purchasing Managers Index for manufacturing and services fell to 54.3 in July from 54.9 in June, a sharper drop than economists had forecast. A measure of expectations fell to a 20-month low. (Source: Bloomberg)
U.K: May takes control of Brexit talks in bid for softer EU split. Prime Minister Theresa May is taking control over the U.K.'s Brexit negotiations and will direct strategy from her own office, in a move that reinforces her drive to keep close to the European Union.. May shook up her team, side-lining the troublesome ministry that she created two years ago to lead the British withdrawal from the EU. It follows months of tensions between the former Brexit Secretary David Davis, who led the department until he quit this month, and May's chief Europe adviser Oliver Robbins, who she increasingly turned to for advice. (Source: Bloomberg)
Japan: Manufacturing sector lost steam in July as demand for exports weakened. The Nikkei Japan Purchasing Managers Index for manufacturers for July showed a preliminary reading of 51.6, the lowest since November 2016, and down from 53.0 in June. Output came in at 52.4, down from 53.6, and the index for stocks of finished goods fell. A reading above 50 indicates the sector is expanding, while one below that signals a contraction. "New business grew at a much weaker rate and was broadly flat, while export demand, despite further yen depreciation, deteriorated for a second month running," said Joe Hayes, an economist at IHS Markit, which compiles the survey. "Slowing demand presents a worrying development given input delivery times lengthened to the sharpest extent in over seven years," he wrote in the data release. (Source: Bloomberg)
S. Korea: Consumer confidence sags as trade war clouds outlook. Consumer confidence in South Korea fell in July by the most in 20 months, due largely to escalating trade battles and growing worries about an economic downturn. The Bank of Korea's monthly consumer sentiment index dropped to 101.0 in July from 105.5 the previous month, according to a statement by the central bank. The result was the lowest since 100.8 registered in April last year, when the country was rattled by a corruption scandal that eventually saw former President Park Geun-hye given a prison sentence. The slide in sentiment follows an escalation in the trade clash between the U.S. and China, and comes amid sluggish job growth in South Korea, the central bank said. The fight between Korea's two largest trading partners is adding to risks for the nation's export-dependent economy, which is also suffering from sagging domestic demand. (Source: Bloomberg)
Philippines: Duterte seeks lawmakers to pass legislation that will help restrain inflation and spread wealth and power beyond the capital region. In his annual address to Congress, Duterte asked both chambers to prioritize removing caps on rice imports to help cut domestic prices by as much as PHP7 (USD0.13) per kilo. The cost of rice, one of the biggest components of the consumer basket, is the highest in three years and continued to increase in July. The 73-year-old leader also pitched for laws lowering company taxes and changing the constitution that will enable a shift to a federal form of government. Duterte promised to sign in the coming days a law that will expand the autonomous Muslim region and help end four decades of insurgency in his home island of Mindanao. (Source: Bloomberg) | |
| | | | | Other News:
Dagang NeXchange: Launches online halal platform in the Philippines. The group has launched its GoHalal platform in the Philippines through its wholly-owned subsidiary Global Market eCommerce S/B. This is a key initiative after an agreement signed last month between the company and the Local Government of Naga City of the Philippines, and the Department of Education Division of Naga City. Under the agreement, DNeX will be given the opportunity to implement overall initiatives for a halal hub in the Philippines, including the development of blueprint, systems and framework for the halal hub.(Source: The Edge Markets)
Nextgreen Global: Terminates MoU with China Nuclear. The group has terminated its Memorandum of Understanding with China Nuclear Industry Huaxing Construction Co Ltd to develop and manage the second and third phases of its Green Technology Park. Nextgreen — formerly known as BHS Industries Bhd — said it has not entered into any definitive or cooperative agreement with China Nuclear pursuant to the MoU. (Source: The Edge Markets)
Caring Pharmacy: Posts higher Q4. The group's net profit for the fourth quarter ended May 31 rose 34.6% to MYR5.86m from MYR4.36m recorded a year ago on the back of higher revenue. Revenue for the period grew 8.2% to MYR129.35m from MYR119.5m, driven by the higher sales generated from existing outlets due to aggressive and extensive promotional campaign launched during the quarter under review. The group has proposed a final dividend of 5sen/ sh amounting to MYR10.89m. (Source: The Sun Daily) | |
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