The Week Ahead: SC Annual Report 2023, Inflation And Producer Price Index Data In Focus

Malaysia will kick off a busy week of events with the Securities Commission Malaysia (SC) releasing its Annual Report 2023 on Monday. The annual report will provide a comprehensive review of the Malaysian capital market for 2023 and outline strategic priorities for the SC and the overall capital market for 2024.

Malaysia’s February inflation data will be published on the same day, followed by the producer price index (PPI) data on Wednesday. In a report last Friday, UOB Global Economics and Markets Research expects Malaysia’s consumer price index (CPI) to remain unchanged at 1.5% year on year (y-o-y) in February as compared to January.

Several Asia-Pacific markets will close this week, starting with India that will celebrate Holi on Monday, while Malaysia observes Nuzul Al Quran on Thursday. Australia, New Zealand, Hong Kong, the Philippines, Singapore, India and Indonesia will be closed for Good Friday on March 29.

Vietnam will release its gross domestic product (GDP) figures for the first quarter (1Q) on Friday. Bloomberg estimates a growth of between 5.4% and 6.1% y-o-y for the third largest Southeast Asian economy, compared with 6.8% y-o-y in the fourth quarter of 2023.

Singapore reports February inflation on Monday. UOB expects headline inflation to increase to 3.2% y-o-y from 2.9% y-o-y in January. Meanwhile, February industrial production data will be due on Tuesday.

Elsewhere in Asia, China is set to announce its official March manufacturing and non-manufacturing purchasing managers’ index (PMI) on Sunday. Bloomberg predicts the manufacturing PMI to read 50.3, which signifies an expansion of activities, compared with 49.1 in February.

The US Federal Reserve’s decision last week to hold its key rate at between 5.25% and 5.50% for the fifth consecutive time underscored its commitment to lower interest rates in 2024, according to PMI by S&P Global Market Intelligence in a report last Friday.

This means the focus now shifts to a slew of data including the US final 4Q GDP release, monthly core personal consumption expenditure (PCE) price index, home prices and durable goods orders, it says.

“As such, the Fed’s preferred gauge of inflation, core PCE, will be a highlight in the coming week,” says S&P Global. The February core PCE will be released on Friday, with consensus expectations indicating a softer reading in February, supportive of the Fed lowering rates in the coming months.

Other US monthly activity data will also be closely watched, including personal income and spending figures, for insights into consumer activity, says S&P Global. February personal income and spending figures will be released on Friday.

Durable goods orders will also shed light on business investment trends, especially after manufacturing sector conditions were shown to have improved at the fastest pace since July 2022, according to S&P Global.

The key European data is the preliminary March CPI from France and Italy on Friday while the eurozone (April 3) and the rest of its constituent economies (April 2) will release their CPI prints after the holidays.

As for Japan, the data calendar will be focused on prices in Tokyo and key February monthly economic data on Good Friday, says UOB. The key monthly economic data for Japan include Tokyo headline and core CPI, February retail sales, unemployment rate, housing starts and preliminary industrial production, which will be released on Friday.

South Korea will release its consumer confidence index for March on Tuesday and its industrial production numbers for February on Friday, while Hong Kong and Thailand will release their February trade data this week.

On the local corporate front, SSF Home Group Bhd is expected to release its financial results for the quarter ended Jan 31, 2024, on Tuesday, followed by United Malacca Bhd and SNS Network Techno­logy Bhd on Wednesday. 

Binastra Corp Bhd is expected to announce its results on Thursday while Hiap Teck Venture Bhd, Kronologi Asia Bhd, Kim Loong Resources Bhd and Glomac Bhd are expected to do so on Friday.

Barakah Offshore Petroleum Bhd will hold its extraordinary general meeting on Monday to obtain the approval of shareholders on its proposed disposal of the KL101 barge for US$11.4 million (RM53.28 million).