14/04/2025

BIZ & FINANCE MONDAY | APR 14, 2025

16

Wholesale, retail trade sales rise to RM148.3b in February

Manufacturing sector bolsters Industrial

Production Index PETALING JAYA: Malaysia’s Industrial Production Index (IPI) for February 2025 recorded a growth of 1.5%, driven by an increase in the manu facturing sector. Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, “The increase in the IPI to 1.5% in February 2025 was contributed by the growth in the manufacturing sector, which expanded by 4.8%. However, the output of the mining and electricity sectors declined by 8.9% and 2.8%, respectively. From a monthly com parison point of view, the IPI recorded a decrease of 6.8% (January 2025: -0.4%).” The growth in the manufacturing sector for February was supported by output in export-oriented industries, which grew by 5.7%, compared to 5.6% in January. Additionally, the manufacturing of chemicals and chemical products contributed to a growth rate of 5.7%. However, export-oriented in dustries remained in the negative range, with a decline of 5.6% compared to January (-0.9%). Domestic-oriented industries showed growth of 2.9% in February compared to a modest growth of 0.2% in the previous month. Mohd Uzir stated, “The contraction of 8.9% in the mining sector in February 2025 was driven by a decline in the output of natural gas and output of crude oil and condensate, which recorded a decline of 10.3% and 6.7% respectively. From a monthly comparison point of view, the mining index dropped to -12.5% from -0.5% recorded in January 2025.” Meanwhile, the electricity index fell by 2.8% in February, compared to a negative 0.2% recorded in the previous month. On a month-to month comparison, the electricity index remained in the negative range, with a 6.6% decline. Cumulatively, for January-Feb ruary, the IPI increased by 1.8% compared to the same period in 2024, with the manufacturing sector index showing an expansion of 4.2%. Top traded local stock underlyings last week were Supermax Corporation Bhd and Gamuda Bhd, as the shares rose 11.2% and fell 6.9% w-o-w, respectively. Tariffs imposed on Chinese exports are seen to bode well for Malaysian glove makers, as they enhance the competitiveness of Malaysian glove exports to the US compared to Chinese producers. To view the full list of structured warrants available on BursaMalaysia, visit malaysiawarrants.com.my. Provided for Malaysian residents’ information only. It is not an offer or recommendation to trade and is not research material. You should make your own assessment and seek professional advice. The warrants will not be offered to any US persons.

PETALING JAYA: The wholesale and retail trade recorded total sales of RM148.3 billion in February 2025, marking a year-on-year growth of 5.1%, said Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin. “The increase in sales for February was mainly driven by the retail trade and the wholesale trade sub-sectors. Retail trade recorded total sales of RM65.2 billion, an increase of RM3.6 billion with a year on-year growth of 5.9%. Wholesale trade registered total sales of RM65.5 billion, a rise of RM3.3 billion, with a year-on-year growth of 5.3%. During the same period, the motor vehicles sub-sector recorded sales amounting to RM17.6 billion, an increase of RM0.3 billion or 1.5% year-on-year.” Mohd Uzir highlighted that the growth in the retail trade sub-sector was primarily driven by robust performance across various categories. Retail sales in non-specialised stores increased by 5.9% to RM25 billion, while retail sales in specialised stores saw a growth of 5.5%, reaching RM13.8 billion in February. Additionally, retail sales of household goods rose by 4.6% to RM7.4 billion, with the growth largely attributed to increased demand for building materials and hardware products. The surge in retail activities can be largely explained by pre Ramadan and Hari Raya Aidilfitri purchases of essential items. Moreover, retail sales of cultural and recreational goods increased by 8.6%, reaching RM2.9 billion. This growth was driven by heightened spending on school supplies ahead of the new academic session, which o Increase of 5.1% compared with same month of 2024 VOLATILITY surged on global markets as news on the US-China tariff standoff took over headlines last week. Warrants turnover totalled RM524.2 million last week, more than double that of the previous week. Warrants over the Hang Seng Index (HSI) continued to dominate, comprising close to 80% of turnover, while warrants over the local benchmark FBM KLCI, Malaysian stocks, S&P 500 Index and Nikkei 225 saw increased interest. The US market opened where it ended the week before last – down, as it posted further losses last Monday and Tuesday, before surging on record-setting volume on Wednesday, then see-sawing for the rest of the week. The turbulent week, marked by record level trading and swings, ended with the SP500 closing 5.7% WARRANTS WATCH

billion, driven by increased demand for clothing, jewellery and pharmacy related items, further reflecting positive consumer sentiment ahead of festive celebrations. During the same period, motor vehicles sub-sector recorded an increase in sales compared to February last year, supported by sales of motor vehicle parts and accessories, which rose by 2.7% to RM5 billion. This was followed by sales, maintenance and repair of motorcycles, which grew by 8.2% to RM1.2 billion. Sales of motor vehicles also contributed to the rise in this group, with an increase of 0.2% to RM8.9 billion. A similar trend was reported by the Road Transport Department, which recorded 67,327 vehicle registrations, a slight increase com pared to 66,935 registrations in the same month of the previous year. Online retail sales in February showed an increase, with the index rising by 8.5% year-on-year, driven by various festive promotions and back to-school preparations. After seasonal adjustment, the index recorded a month-on-month decline of 2.1%. In terms of volume index, wholesale and retail trade recorded a year-on-year increase of 3.9%. This growth was mainly driven by the wholesale trade sub-sector, which rose by 4.9%, followed by retail trade with a 4.3% increase. In contrast, the motor vehicles sub-sector recorded a decline of -0.8%. After seasonal adjustment, the volume index posted a month-on-month increase of 1.8% compared to January. Looking ahead, the sector is expected to sustain its growth momentum, supported by stable domestic consumption and seasonal festive spending. Continued positive consumer sentiment is also antici pated to reinforce the sector’s outlook in the near term.

began in mid-February. In February, the wholesale trade sub-sector continued to display strong resilience, underpinned by sustained domestic demand for essential goods and household-related products. According to Mohd Uzir, growth in the segment was particularly driven by other specialised whole sale trade, which increased by 3.7% to RM24.6 billion, mainly attributed to higher demand for hardware materials. These materials were

commonly used by households for furnishing and redecorating homes in anticipation of the upcoming festive season. Wholesale of food, beverages and tobacco also in creased in this month with 6.3% year-on-year to RM13.3 billion. This growth was largely supported by stronger consumer spending on food-related products in preparation for Ramadan and Hari Raya Aidilfitri. Meanwhile, wholesale of household goods expanded by 5.1% to RM13.7

Big swings in prices amid global market volatility

Top index warrants by volume traded Warrant Volume Issuer Exercise

higher week-on-week (w-o-w), its best performance since November 2023 following its 9.1% decline last week. Notably, on Wednesday, the surge in the SP500 (+9.5%) and the Nasdaq 100 (NDX) caused the bid price of call warrants SP500-C50 and NDX-CJ to surge 64.3% to RM0.115 and 116.7% to RM0.065, respectively, on Thursday, moving in larger percentages than their respective underlyings due to warrants’ gearing effect. The HSI also saw a volatile week. As the Hong Kong market was shut on the Friday before, HSI April futures opened into a 13.2% or 3,000-point slump on Monday, though it closed the next four days in the green to end the week at 20,856, 8.5% lower w-o-w. With the steep decline on Monday, investors took positions in a range of HSI calls, notably causing call HSI CWCE to be sold out as investors net

Expiry date

name

(million)

level

HSTECH-C24 SP500-C50 HSTECH-C22 HSTECH-C20

24.5 13.1 11.6

Macquarie Macquarie Macquarie Macquarie Macquarie

7,000.00 6,500.00 7,500.00 6,500.00 40,000.00

30 Jul 2025 23 Jun 2025 30 Jun 2025 30 Jun 2025 13 Jun 2025

6.9 4.0

NIKKEI-CN

bought over 100 million units. As the futures rebounded 5.4% on Tuesday through Friday, this call warrant’s bid price doubled from RM0.015 to RM0.030, demonstrating the gearing effect that warrants provide. By volume, top traded calls include HSI CWC4 and HSI-CWCT, while top traded puts are HSI-PWD3 and HSI-PWDT. The Hang Seng Tech Index (HSTech) also made notable moves

last week, pulling investors’ attention to HSTech warrants. Trading activity was largely in the call warrants as the HSTech June futures fell 8.0% w-o-w. Further, investors also turned to warrants over the FBM KLCI, with trading largely in the puts e.g. FBMKLCI-CB3 and FBMKLCI-CB4, though there was some interest in calls such as FBMKLCI-CQR and FBMKLCI-CQY.