US: Consumer sentiment declined in May. Consumer sentiment deteriorated in May as consumers grew more concerned about a pickup in inflation, a survey released. The University of Michigan's Consumer Sentiment Index fell to a final reading of 82.9 from April's final level of 88.3, though it was little changed from May's preliminary reading of 82.8. Consumer confidence remained largely unchanged at the reduced level recorded at mid-month. (Reuters)
US: Pent-up demand, shortages fuel inflation. US consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992, because of pent-up demand and supply constraints as the economy reopens. The strong inflation readings reported by the Commerce Department had been widely anticipated as the pandemic's grip eases, thanks to vaccinations, and will have no impact on monetary policy. (Reuters)
EU: Sentiment hits three-year high, inflation expectations jump. Economic sentiment improved by more than expected to a three-year high in May, data showed, with the strongest gains in services, retail and among consumers as governments eased pandemic restrictions. The European Commission’s economic sentiment index rose to 114.5 points in May from 110.5 in April, beating expectations in a poll of an improvement to 112.1. It was the highest level of the index since Jan 2018. (RTT)
EU: Greece producer prices rise; jobless rate falls. Greece producer prices increased in April and jobless rate declined in Feb, data from the Hellenic Statistical Authority showed. The producer prices rose 14.6% YoY in April, following a 9.1% increase in March. On an annual basis, producer prices in the domestic market increased by 10.7% and those of non-domestic market gained 28.9% in April. (RTT)
EU: Italy producer prices rise for third month. Italy's producer prices rose for the third month in a row in April, data from the statistical office Istat showed. The producer price index increased 6.5% YoY in April, following a 2.7% rise in March. On a monthly basis, producer prices rose 1.1% in April, following a 0.9% increase in the preceding month.. (RTT)
India: Economy faces resilience test amid risks from virus. The Indian economy’s resilience will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one’s yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year. The economy is on track to grow 10% in the year. The biggest hit from the second wave of Covid infections has been to demand, with a loss of mobility, discretionary spending and employment, the Reserve Bank of India said. (Bloomberg)
South Korea: Industrial output sinks 1.6% in April. Industrial production in South Korea was down a seasonally adjusted 1.6% on month in April, Statistics Korea said. That was shy of expectations for an increase of 1.5% following the downwardly revised 0.9% contraction in March (originally -0.8%). On a yearly basis, industrial production jumped 12.4%, beating forecasts for a gain of 11.2% following the downwardly revised 4.4% increase in the previous month (originally 4.7%). (RTT)
JHM: Eyes nine-acre land for RM21.6m as part of expansion into telecoms equipment industry. JHM Consolidation is eyeing to acquire a piece of nine-acre land at the Batu Kawan Industrial Park in Penang for RM21.6m as part of its expansion into the telecommunication equipment industry. It has entered into SPA with Penang Development Corp for the purchase of the land, which is currently vested in the State Authority of Penang. (The Edge)
HLT: Shuts down plant due to Covid-19 outbreak, 5% output volume loss estimated. HLT Global said it has commenced a temporary stoppage of its manufacturing facility in Kuala Pilah until June 8 after several employees caught Covid-19. “As a result of the temporary closure of the affected plant, the capacity loss is estimated to be less than 5% of the total annual output volume,” said HLT. (The Edge)
Pharmaniaga: Cautiously optimistic for FY21, may offer Sinovac vaccine to private sector after meeting obligation to govt. Pharmaniaga has said it remains cautiously optimistic about recording a better performance in 2QFY21, by focusing on operational efficiencies and fiscal discipline throughout its value chain, including the supply and distribution of Covid-19 vaccine in the country. Pharmaniaga is poised to fulfil its contractual obligation towards the government by distributing a total of 12m doses of Sinovac vaccine in June and July. (The Edge)
PPB Group: Posts higher 1Q net profit of RM402.18m. PPB Group’s net profit for 1QFY21 rose to RM402.18m from RM187.27m a year earlier mainly due to higher contribution from Wilmar International Limited and higher profit from the grains and agribusiness segment. The grains and agribusiness segment was expected to weather through the sharp increase in commodity prices and the margin compression it brought on. (StarBiz)
MPI: 3Q earnings more than triple as demand surges. MPI posted its best quarterly earnings in years as the global chip shortage pushed prices higher. Net profit in 3QFY21 more than tripled YoY to RM74.4m, compared with RM22m made a year ago. Turnover surged 40% YoY to RM526.6m. MPI said revenue contribution from Asia, USA and Europe expanded 35%, 51% and 51% respectively during the quarter. (StarBiz)
Rubberex: Net profit surges to RM87m in 1Q on higher sales. Rubberex's net profit surged to RM86.57m in 1QFY21 from RM9.26m in 1QFY20. This was attributable to the consistently strong demand of its products namely household, industrial and nitrile disposable gloves in the midst of heightened health and safety awareness during the pandemic. (NST)
Ann Joo: Swings to profit in 1Q as all segments improve. Ann Joo reported a net profit of RM73.62m in 1QFY21 from a net loss of RM30.56m a year ago, helped by gains across all key segments, thanks to improved margin amid higher selling prices. Ann Joo saw a swing to profit for its manufacturing segment as well as its investment holding and property management segment, while trading segment earnings also rose more than five-fold. (The Edge)
The FBM KLCI might open lower today due to full MCO announcement late last Friday despite US stocks eked out a gain as investors assessed the latest inflation data, and the S&P 500 snagged its fourth consecutive monthly gain. The S&P 500 ended 0.1% higher on Friday, approaching record levels. That took the blue-chip benchmark’s rise for the month to 0.6%. The technology heavy Nasdaq Composite also added 0.1%, but was down 1.5% for the month. The decline snapped a six-month long winning streak.
Meanwhile, the Russell 2000 index of small-cap stocks slid 0.2% on the day, but clocked its eighth consecutive monthly rise — it’s longest winning streak since 1995. Core personal consumption expenditure — the Federal Reserve’s preferred measure of inflation that excludes volatile food and energy costs — hit 3.1% in April from the same month last year, its highest annual reading since 1992. Economists surveyed by Reuters had forecast a 2.9% increase.
Across the Atlantic, the region-wide Stoxx Europe 600 index closed up 0.6% for its second record high of the week, as the continent’s vaccination rollout and economic reopening gathers pace.
Back home, the FBM KLCI closed up 0.54 point or 0.03% at 1,594.44 after a final-hour nudge helped the 30-stock index finish in positive territory as investors weighed corporate financial results during the ongoing reporting season and after major Asian equity indices ended higher.
In the region, major benchmarks largely closed higher. Japan’s Nikkei 225 advanced 2.1%, led by industrial companies. China’s Shanghai Composite Index declined 0.2%. South Korea’s Kospi added 0.7%.
Source: PublicInvest Research - 31 May 2021
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Created by PublicInvest | Mar 21, 2024