All Market Updates.
28 March 2022 - Automotive sector: Recovery in Feb22’, a look at potential speed bumps
Sequential TIV recovery in February against flood-induced supply shortage in January. Potential revision of OMV calculation introduces a risk in 2023, but local content perspective should be considered, in our view. Expecting soft landing should tax holiday expire; ‘future demand’ brought forward by tax holiday did not quite materialize in past 2 years, in our opinion. 2022F TIV growth of +13%yoy maintained.
16 March 2022 - Construction sector: All aboard MRT3
Tenders for 5 turnkey contract packages of MRT3 to begin in May, to be awarded by 4QCY22. Construction cost estimated at RM31b, excluding land acquisition cost at RM8.4b. Government to fund project using sukuk, gives MRT Corp approval to explore private finance initiative (PFI). MRT3 to have a length of 50.8km, of which 40.3km is elevated and 10.7km underground. Maintain POSITIVE on construction on the back of improving outlook and economic recovery play.
14 March 2022 - Positive Signals for Consumer Spending Despite Inflation Concerns
Distributive trade sales growth 2022 debut at 8-month high. Malaysia’s distributive trade sales increased by +7.7%yoy in Jan-22, the biggest gain since Jun-21. Sales of motor vehicles and retail trade surged to 8-month high at +19.4%yoy and +7.3%yoy respectively while wholesale sales improved by +5.7%yoy. Continued expansion in the consumer spending reflected the effects of pick-up in economic activities, steady recovery in labour market and stable inflationary pressure.
7 March 2022 - Construction Sector: Laying the tracks of recovery
MRT3 Circle Line has been given the green light by the Prime Minister, earlier than market expectations of 2QCY22. MRT3 will have a length of about 50km, with a circular alignment running along the perimeter of the Kuala Lumpur city.
25 February 2022 - The Russian Gambit - Escalation in Ukraine's Donbas Region
Russia made a risky move yesterday by invading Ukraine controlled areas of the Donbas region. Risks to global growth from inflation and further disruption in global supply, but we expect minimal direct impact to Malaysia’s exports. Market reaction was expected but will stabilize as conflict has no profound impact to equities market so long as corporate earnings are unaffected. Foreign investors continue to come in despite conflict. Conflict could see higher commodities prices.