This article first appeared in The Edge Malaysia Weekly on December 23, 2024 - December 29, 2024
It will be a pretty quiet week ahead as Christmas, which falls on Wednesday, will see most global economies’ markets closed except for China, Thailand, Japan and Vietnam. For Boxing Day, markets in Hong Kong, New Zealand, Australia, as well as most of Europe and Canada, will also be closed. North Korea will commemorate Constitution Day on Dec 27.
Nonetheless, investors have been eagerly waiting for the window-dressing effect, as December is typically a month of gains for equities, buoyed by extra efforts by portfolio managers to improve their financial reports and portfolios.
Since the recent peak in August, the FBM KLCI has declined by more than 5% to close at 1,591.41 points last Friday. Month to date, the benchmark index was down 0.18%.
On the corporate front, Sunway Construction Group Bhd (KL:SUNCON) will be having its extraordinary general meeting (EGM) on Dec 23 for the proposed establishment of an employees’ share option scheme.
Meanwhile, Boustead Heavy Industries Corp Bhd (KL:BHIC) will, at its Dec 24 EGM, seek shareholders’ approval for the disposal of its 51% stake in Contraves Advanced Devices Sdn Bhd to its joint-venture partner in the firm, German arms maker Rheinmetall AG, for RM54 million cash. The disposal of the stake will result in a loss of RM14.82 million to BHIC.
On Dec 27, ABM Fujiya Bhd (KL:AFUJIYA) will have its EGM in Kuching, Sarawak, to obtain the green light from its shareholders for a business plan that will see Chinese battery maker Jujiang Power Technology Co Ltd subscribing for a 40% stake in its wholly-owned unit Fuya Energy Sdn Bhd for RM48 million.
In the local courts, no major court hearings are scheduled for the week.
Across the causeway, Singapore will release its key November Consumer Price Index (CPI) on Dec 23, as well as its industrial production on Dec 24. Japan’s CPI is expected to be released on Dec 27, while the country’s unemployment rate for November will be released on Dec 23.
Taiwan’s November industrial production data will be shared on Dec 23.
Over in Europe, the UK is set to release its final 3Q gross domestic product (GDP) on Dec 23.
The US is expected to release its latest initial jobless claims on Dec 26. According to S&P Global, US Purchasing Managers’ Index (PMI) data has hinted at a modest rise in private sector jobs to signal some sustained underlying labour market health.
S&P Global in its Dec 20 report states: “We have to wait for the New Year to see the more interesting, timelier economic data. In particular, the first week of the new year includes worldwide PMI data while the second week brings the US non-farm payroll report alongside flash December inflation numbers out of the eurozone and an update on UK recruitment.
“While US survey respondents have reported an increasingly robust outlook for the year ahead amid hopes of increased government support in terms of protectionism, lower taxation, domestic political stability and loose regulation, the opposite applies in Europe where US protectionism worries are compounded by the political crisis in Germany and France. How much tariff worries are playing out in other economies, notably mainland China, will especially be awaited,” the report says.
Meanwhile, US pending home sales for November are expected to be released on Dec 30. On the same day, Japan’s au Jibun Bank’s December final manufacturing PMI will also be available.
The following week will also be a short week with New Year’s Day falling on Wednesday. Most economies including Australia, South Korea, Spain, the UK, Turkey and Norway will be closed on Jan 1, 2025, and countries like Japan, New Zealand and Switzerland will also be closed on Jan 2. The Japanese market continues its holiday on Jan 3 as well.
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