The Week Ahead: Eyes on GE14 polling date and US-China tariff tussle

TheEdge Mon, Apr 16, 2018 02:00pm - 5 years View Original


WITH Parliament finally dissolved last Saturday, the long-awaited 14th general election (GE14) is expected to happen by late April or early May before the start of the fasting month in mid-May. The actual polling date is expected to be announced by the Election Commission soon.

Parliament adjourned sine die last Thursday (April 5), with the 13th sitting being the longest, stretching to six sessions for the first time. The final session saw the passing of the controversial re-delineation report (which changes election constituency boundaries) on March 28, as well as the Anti-Fake News Bill on April 3 — both only needed a simple majority to be carried.

The ruling Barisan National coalition is expected to win the upcoming general election, which pits Prime Minister Datuk Seri Najib Razak against 92-year old Tun Dr Mahathir Mohamad of the opposition Pakatan Harapan (PH). GE14 will also see the DAP dropping its “rocket” logo in favour of a common PH banner. (See our State of the Nation and Run-up to GE14 coverage on Pages 14 and 61.)

Eyes will also be on the see-sawing tensions and tariff tussle between the US and China, both of which said they are prepared to have further discussions in the name of free trade. The feud escalated at the time of writing. US President Trump instructed the US Trade Representatives (USTR) to consider US$100 billion additional tariffs on Chinese products last Thursday (early Friday in Asia) after China retaliated to Trump’s earlier tariffs by announcing tariffs on 106 US products, including soybeans, cars and whiskey.

Chinese president Xi Jinping is slated to deliver a keynote address at the Boao Forum for Asia (April 8 to 11) in Hainan, themed “An Open and Innovative Asia for a World of Greater Prosperity”.

Back home, the key economic data release this week is the Industrial Production index and monthly manufacturing statistics for February on Wednesday (April 11).

There are no scheduled releases from Bank Negara Malaysia this week, which kicks off with the latest foreign reserves figures from China. The Monetary Authority of Singapore (MAS) has a monetary policy statement with the release of its 1Q2018 advance GDP on Friday (April 13). What will interest people this side of the Causeway will be MAS’ guidance on the strength of the Singapore dollar.

The US Federal Open Market Committee will release its latest minutes on April 11, the Bank of Korea has a key rate decision on April 12 while the Reserve Bank of Australia has a financial stability review the next day.

Several trade, Producer Price Index (PPI) and Consumer Price Index (CPI) releases are expected this week, including Taiwan’s CPI (April 10), the Philippines’ export and trade balance (April 10), US’ PPI (April 10) and CPI (April 11), China’s CPI & PPI (April 11) and trade balance (April 13), India’s CPI and Industrial Production (April 12), the UK’s industrial production and trade balance (April 11) and the eurozone’s industrial production (April 12) and trade balance (April 13).

Other data releases include Japan’s balance of payments and Economy Watchers Survey (April 9), Eurozone Sentix Investor Confidence index (April 9), Australia Business Confidence Index (April 10), the US NFIB Small Business Optimism Index (April 10), Australia’s Westpac Consumer Confidence (April 11), and the US University of Michigan Sentiment Index (April 13).

On the Malaysian corporate front, a number of companies are having their annual general meetings (AGM) this Thursday (April 12): Malayan Banking Bhd, KLCCP Stapled Group, Carlsberg Brewery Malaysia Bhd, Boustead Holdings Bhd and Boustead Plantations Bhd.

Other companies having AGMs include Cypark Resources Bhd (April 9) and Poh Huat Resources Bhd (April 10). Shareholders of MRCB-Quill REIT, Pharmaniaga Bhd, Boustead Heavy Industries Corp Bhd and AmanahRaya Real Estate Investment Trust are meeting April 11.

Boustead Plantation is also holding an extraordinary general meeting (EGM), as are Protasco Bhd (April 9) and Country View Bhd (April 11). Protasco is seeking shareholders’ approval for a proposed 1-for-6 bonus share issue and 1-for-4 bonus issue of warrants. In its circular to shareholders, it said its financial performance is underpinned by its maintenance (federal and state roads) segment. Protasco also has an outstanding order book of RM1.095 billion as at end- 2017 to be delivered within the next two years. It expects to launch the D’Perdana Telipot project in Kota Bahru, Kelantan ,with a gross development value of RM166 million by end-June.

Country View wants shareholders’ approval for its proposed purchase of a 163.92-acre (66.336ha) freehold land in Pulai, Johor, for RM310 million from a unit of UEM Sunrise Bhd, Bandar Nusajaya Development Sdn Bhd. Country View also wants approval for its proposed disposal of 139 pieces of land totalling 2.23 million sq m in Kulim, Kedah, for RM119.9 million (RM74.67 million net gain).

It plans to fund the proposed purchase with RM62 million to RM75 million net proceeds from the land sale as well as RM204 million to RM217 million in borrowings, according to its circular to shareholders. That would raise its gearing from 0.22 times to above 0.8 times.

Boustead Plantations, meanwhile, has proposed a 2-for-5 bonus issue as well as a RM750 million acquisition of country lease plantation land held under 42 land titles measuring 11,579.31ha in the district of Labuk and Sugut, in Sandakan, Sabah, from Pertama Land & Development Sdn Bhd.

The total area planted with oil palm is 9,998.36ha, of which 64% are prime trees (10 to 20 years), 25.1% are old trees (over 20 years), 10.29% are young mature (4 to 9 years) and 0.6% are immature (0.3 years). Average fresh fruit bunch production was 8.41 tonnes/ha for the year ended June 30,2017 (FY2017), 8.85 tonnes/ha in FY2016 and 10.43 tonnes/ha in FY2015 while plantation profit was RM24.69 million in FY2017 versus RM14.07 million in FY2016 and RM19.06 million in FY2015. The audited net book value of the land as at June 30, 2017, was RM340.24 million while the market value as at Oct 10, 2017, was RM760 million.

 

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