Economy

US: Existing home sales extend decline, house prices race to record high. US home sales fell for a third straight month in April as an acute shortage of properties drove prices to a record high. Existing home sales dropped 2.7% to a seasonally adjusted annual rate of 5.85m units last month, the National Association of Realtors said. Sales fell in the Northeast, West and the densely populated South, but rose in the Midwest. Economists polled by Reuters had forecast sales rebounding 2.0% to a rate of 6.09m units in April. Home resales surged 33.9% on a YoY basis. The annual increase was, however, distorted by the plunge in sales in April 2020, when the economy was reeling from mandatory shutdowns of non-essential businesses to slow the first wave of Covid-19 cases. (Reuters)

EU: Private sector expands at fastest pace since early 2018. The euro area private sector activity grew the most in more than three years in May as economies continued to open up from virus restrictions, flash survey data from IHS Markit showed. The composite output index rose to 56.9 from 53.8 in the previous month. The score was expected to climb moderately to 55.1. By sector, the upturn continued to be led by manufacturing, where output grew for an eleventh straight month. Nonetheless, the manufacturing PMI dropped marginally to 62.8 from 62.9 in April. Economists had forecast the score to fall to 62.5. The services PMI came in at 55.1 versus 50.5 a month ago. The reading was also above economists' forecast of 52.3. New order growth surged to the highest since June 2006, outpacing growth of output to the greatest extent in the survey's 23-year history. Employment grew for a fourth successive month in May. (RTT)

EU: Consumer confidence highest since 2018. Eurozone's consumer confidence rose more than expected in May to its highest level in more than two-and-a-half years, preliminary data from European Commission's monthly survey showed. The flash consumer  confidence index climbed to -5.1 from -8.1 in April. Economists had forecast a score of -6.8. The latest reading was the highest since October 2018, when it was at the same level. A reading higher than that, -4.7, was seen in August that year. The consumer confidence index for the EU also climbed three points to -6.0 in May. That was the highest since February last year, when it was -5.8. The euro area indicator is slightly above its pre-pandemic level, while the EU measure equaled the level, the commission said. (RTT)

EU: Germany private sector growth improves in May. Germany's private sector activity experienced a slight pick-up in May, driven by an improved performance across services, flash survey results from IHS Markit showed. The composite output index advanced to 56.2 in May from 55.8 in April. But the reading was below the expected level of 57.1. The improvement was driven by a return to growth in services activity amid easing of some lockdown restrictions. Meanwhile, growth in manufacturing moderated as record supply delays caused disruption to production at an increasing number of businesses. The services PMI hit a 10-month high of 52.8 versus 49.9 a month ago and the economists' forecast of 52.0. The manufacturing PMI fell to 64.0 in May from 66.2 in the previous month. Economists had forecast the reading to drop to 65.9. (RTT)

UK: Retail spending soars as economy reopens. British shoppers splashed out on new clothes in April after shops reopened following months of lockdown closures, adding to signs of a robust economic recovery, official data showed. Sales volumes in April jumped 9.2% MoM, after rising 5.1% in March. Clothing sales soared by almost 70%. "Fashion retailers (were) the ultimate beneficiaries of beer gardens reopening and the 'rule of six' night out returning," said Lloyds Bank. BoE policymakers are keeping a close watch on retail sales, expecting a surge in spending as wealthier households spend savings built up during lockdowns. The central bank forecast this month that the economy would grow by 7.25% this year after slumping by nearly 10% in 2020, its biggest decline in more than 300 years. (Reuters)

UK: Private sector expands at record pace in May. The UK private sector expanded in May at the fastest pace since records began two decades ago, underpinned by easing of pandemic restrictions and high levels of pent up demand, flash survey results from IHS Markit showed. The Chartered Institute of Procurement & Supply (CIPS) composite output index rose to 62.0 in May from 60.7 in April. The score matched economists' expectations.This was the highest reading since the index was first compiled in 1998. Survey respondents widely commented on a post-lockdown bounce in business and consumer confidence, alongside higher output levels due to the phased reopening of customer-facing areas of the UK economy. The performance of private sector business is hugely encouraging even with the obstacles of Brexit and Covid still in place, and becoming more resilient at a rate of knots, CIPS said. (RTT)

Hong Kong: Inflation rises in April. Hong Kong's consumer prices increased in April, data from the Census and Statistics Department showed. The composite CPI rose 0.7% YoY in April, following a 0.5% increase in March. Excluding the effects of all government one-off relief measures, the composite CPI increased 0.3% yearly in April, after a 0.2% rise in the previous month. "Looking ahead, overall price pressures should stay mild in the near term as the local economy is still operating below its capacity," a government spokesman said. (RTT) 

Markets

Widad: Wins RM129.4m job from Kedah government. Widad Group has secured a RM129.4m contract from the Kedah state government to upgrade the Bukit Selambau water treatment plant in Kuala Muda, Kedah. The contract was for 130 weeks commencing from June 6, 2021 to Dec 2, 2023. (BTimes)

MTD Group: Completes London's One Crown Place development. MTD Group has completed the construction of a GBP518m One Crown Place in London's EC2. The construction milestone was delivered ahead of schedule. The mixed-use scheme on the fringes of the City of London had now been completed by MACE. (BTimes)

DPS Resources: Joint venture to develop RM150m project in Malacca. DPS Resources has entered into a joint-venture agreement with Rembia Properties Development SB for the development of a mixed project on four pieces of freehold land measuring a total of 25.91 acres in Alor Gajah, Malacca. Rembia Properties will be entitled to RM19m. (SunBiz)

Advancecon: Aims for RM1bn order book. Advancecon Holdings is aiming for a construction order book of RM1bn in light of ongoing tenders for earthworks and civil engineering works for infrastructure projects in Sabah and Sarawak. It has substantial manpower and machinery fleet. (Bernama)

ATA IMS: Maintains it does not practise any form of forced labour. ATA IMS reiterated its claim that it does not practise any form of forced labour in its operations, after a prominent migrant worker rights specialist said the US authorities would investigate the company regarding the matter. It has not received any communication from the US Customs and Border Protection (CBP), or any other similar government authority. (The Edge)

Alam Maritim: Gets court orders for restructuring plan. Alam Maritim Resources secured the required court orders to facilitate the group's restructuring plan by way of a scheme of arrangement with its creditors. The orders were granted pursuant to Section 366 of the Companies Act 2016, that provides relief for companies to propose a compromise with its creditors instead of being wound up. (The Edge)

PIE Industrial: Returns to the black with net profit of RM11.73m in 1Q. PIE Industrial reported a net profit of RM11.73m for the 1QFY21 versus a net loss of RM3.56m a year ago. The increase was mainly attributable to higher revenue, income from scrap sales, and reversal of provision for slow moving inventories in the current quarter. (The Edge)

Pharmaniaga: Bullish after a promising 1Q with higher RM23m net profit. Pharmaniaga is upbeat after posting a promising 1Q result ended March 31, 2021 with a higher net profit of RM23m from RM22m a year ago. Its performance was supported by reduced finance cost as a result of Bank Negara Malaysia's lower OPR, coupled with reduced operating cost due to the ongoing cost containment exercise. (BTimes)

Pecca: Posts back-to-back profit, highest quarterly revenue ever. Pecca Group delivered a second-consecutive record net profit of RM8m for the 3Q ended March 31, 2021 from RM341,000 posted in the same quarter last year. It also registered its highest-ever revenue of RM42.5m. (BTimes)

Source: PublicInvest Research - 24 May 2021