Economy

US: Consumer sentiment rebounds in early June - survey. US consumer sentiment rebounded in early June as inflation fears subsided and households grew more optimistic about future economic growth and employment, a survey showed. The preliminary consumer sentiment index increased to 86.4 in the 1H of this month from a final reading of 82.9 in May. Stronger growth in the national economy was anticipated, with an all-time record number of consumers anticipating a net decline in unemployment. (Reuters)

US: Powell has wall street buying view that inflation won’t last. Federal Reserve Chairman Jerome Powell and his colleagues appear to be winning over investors with the argument that the current surge in consumer prices won’t last. When news broke that US inflation climbed to 5% in May for the first time since 2008, yields on the key 10-year Treasury note moved in the opposite direction, falling to a 3- month low of 1.43%, before rising back up a bit early. (Bloomberg)

EU: Germany wholesale prices rise at fastest pace since 2008. Germany's wholesale prices grew at the fastest pace since mid-2008 in May, data published by Destatis revealed. Wholesale prices rose 9.7% YoY in May, following a 7.2% increase in April. This was the fastest increase since July 2008, when prices gained 9.9%. The annual growth was largely driven by the 46.8% jump in the petroleum product prices. (RTT)

EU: Greece jobless rate declines. Greece's jobless rate fell in March, figures from the Hellenic Statistical Authority showed. The jobless rate fell to 16.3% in March from 16.6% in Feb. In the same month last year, unemployment rate was 16.1%. The number of unemployed decreased by 32,081 persons to 714,779 in March from 746,860 in the previous year. (RTT)

UK: Recovery quickens in April as economy posts record annual jump. Britain's recovery from the Covid-19 pandemic sped up in April as lockdown measures eased, with the fastest monthly growth since July leaving output a record 27.6% higher than a year earlier, when the virus was rampant and lockdown tightest. (Reuters)

China: Auto sales fell 3% in May, first drop in 14 months. Vehicle sales in China fell 3% in May from the same month a year earlier, snapping a streak of 13 consecutive months of gains since April 2020, industry data showed. Overall sales in the world's biggest car market totaled 2.13m vehicles in May, data from the China Association of Automobile Manufacturers (CAAM) showed. (Reuters)

India: Industrial production surges. India industrial production surged more-than-expected in April, mainly due to the low base effect as the economy was under a harsh lockdown in the same month last year to control the coronavirus pandemic. (RTT)

Markets

IJM Corp (Neutral, TP: RM2.03), KLK (Outperform, TP: RM25.51): IJM Corp enters deal with KLK to dispose entire stake In IJM Plantations. IJM Corp has accepted KLK offer to acquire its 56.2% stake in IJM Plantations for RM1.53bn cash. The deal, when completed, would trigger a mandatory general offer (MGO) for KLK to buy out the remaining minority shareholders IJM Plantations. (StarBiz)

MAHB: Registers 1.6m passenger movements in May 2021. Malaysia Airports Holdings (MAHB) entire network of airports registered 1.6m passenger movements in May 2021, against a backdrop of renewed stringent measures and flight restrictions taken by both Malaysia and Turkey authorities to contain the resurgence of Covid-19 cases. (The Edge)

Sime Property: Campaign secures RM572m sales. Sime Darby Property has secured outstanding total sales bookings totalling RM572m for 662 units of residential property across 14 townships. The sales were recorded during its recently concluded “Siap, Sedia, Raya” campaign from April 15 to May 31. (StarBiz)

HB Global: Acquires 5G fibre optic cable company with RM1.1bn project value. HB Global Ltd is expected to have immediate access to at least RM1.1bn in cumulative project value following the acquisition of a 60% stake in Forward Resources and Construction SB (FRC) for RM66m. (BTimes)

Reservoir Link: Expands footprint into solar energy business. Reservoir Link Energy is looking to diversify its business and enter the solar energy business. The group has signed a share sale agreement with Lee Seng Chi to acquire a 51% stake in Founder Synergy SB (FESB) for RM21.17m. This purchase consideration will be funded via RM8.46m in cash, and the allotment of 18.15m new shares in Reservoir Link at 70 sen a piece to Lee. (The Edge)

Minetech : Earnings ease in 4Q, civil engineering division shines . Minetech Resources registered a net profit of RM5.1m for the 4Q ended March 31, 2021 (FY21), from a net loss of RM20.8m a year ago. Revenue increased 89.5% to RM40.87, which it netted over the same period last year. The civil engineering division largely contributed to revenue increase, accounting for 46.1% or RM18.83m of the total revenue. (BTimes)

OM Holdings: Bursa debut on June 22 in first Malaysia Australia cross listing. Australia-listed mining firm OM Holdings Ltd (OMH) is seeking a secondary listing in Malaysia. The tentative listing date of OMH shares on the Main Market of Bursa Malaysia is June 22, 2021. (The Edge)

IPO: IGB Commercial REIT opens IPO applications. IGB Commercial Real Estate Investment Trust (IGB Commercial REIT) will see the listing of 2.3bn units on Bursa Malaysia’s Main Market via an initial public offering (IPO) which includes a restricted offering of 945m units alongside 282m units to institutional investors, as outlined in its prospectus. (SunBiz)

Market Update

The FBM KLCI might open higher today after global stocks hit an all-time high on Friday as investors balanced expectations that the economic recovery will remain robust with caution ahead of next week’s US Federal Reserve meeting. The FTSE All-World index was up less than 0.1% but still reached a new record by the afternoon in New York, even though the global equities benchmark rose just 1% so far in June. Wall Street’s blue-chip S&P 500 index closed the trading session up 0.2%, also reaching an all-time high, while the technology-focused Nasdaq Composite was up 0.4% by the time the closing bell rang. Momentum was strong across the Atlantic, too, where the Stoxx Europe 600 closed up 0.7% to another record — the benchmark’s fourth consecutive week of rises. This followed an upgrade to growth forecasts for the eurozone by the European Central Bank on Thursday. London’s FTSE 100 index rose by the same margin for its best weekly performance since early May.

Back home, the FBM KLCI continued to post a decline, with the benchmark index falling 0.3% or 4.74 points to close at 1,575.16. Stock markets in the region largely gained. South Korea led the way with a 0.8% rise, while Thailand, the Philippines and others rose no more than half a percent.

Source: PublicInvest Research - 14 Jun 2021