Economy

US: Jobless claims show surprise increase to highest level in a month . Initial jobless claims unexpectedly rose last week despite an ongoing recovery in the US employment market, the Labor Department reported. First-time filings for unemployment insurance for the week ended June 12 totaled 412,000, compared with the previous week’s 375,000. That was the highest number since May 15. Economists surveyed by Dow Jones had been expecting 360,000 new claims for last week. All of the increase essentially came from two states – Pennsylvania saw a gain of 21,590, while California rose 15,712, according to unadjusted data. The surprise rise in claims follows a series of incremental steps toward normalcy in the payrolls picture. (CNBC)

US: Leading indicator points to further economic recovery in May . A gauge of future US economic activity increased for the third consecutive month in May, suggesting the economy continued to recover from the recession caused by the novel coronavirus outbreak. The Conference Board said its index of leading economic indicators (LEI) rose 1.3% last month to 114.5, topping its previous peak reached in January 2020. That was in line with economists’ expectations, according to a Reuters poll. (Reuters)

EU: Eurozone construction output falls in April . Eurozone's construction output declined in April after rising in the previous month, data form Eurostat showed. The construction output fell 2.2% MoM in April, after a 4.1% growth in March. In Feb, construction output decreased 2.1%. Production in building construction decreased 1.0% monthly in April and output in civil engineering declined 6.1%. On a YoY basis, the construction output accelerated 42.3% in April, following a 20.0% gain in the prior month. In the EU27, construction output fell 1.6% monthly, and gained 32.7% from a year ago. (RTT)

EU: Eurozone inflation exceeds target for first time since 2018 . Eurozone consumer price inflation surpassed the central bank's target for the first time in more than two years in May, final data from Eurostat showed. Consumer price inflation climbed to 2.0% from 1.6% in April. The rate came in line with the flash estimate published on June 1. The actual inflation was the fastest since 2018. The ECB targets inflation "below, but close to" 2%. The increase in inflation was largely driven by a 13.1% rise in energy prices. Food, alcohol and tobacco prices gained 0.5% and services costs advanced 1.1%. (RTT)

Taiwan: Central bank holds rate at record low . Taiwan's central bank kept its key interest rates unchanged at a record low, as widely expected. Policymakers decided to hold the benchmark rate at 1.125%. Due to higher crude oil prices and low base period, inflation was higher in the first half of the 2021, the bank observed. But it is expected to slow down in the second half of the year. Inflation forecast for this year was lifted to 1.6% from 1.07%. Core inflation is seen at 1.11% versus 0.77% estimated previously. (RTT)

Indonesia: Central bank holds key rate at record low amid Rupiah, virus worries . Indonesia’s central bank held its benchmark rate at a record low as it sought to keep monetary policy accommodative amid a rise in COVID-19 cases and maintain stability in the Rupiah currency. Bank Indonesia (BI) kept the benchmark 7- day reverse repurchase rate at 3.50% for a fourth straight meeting, as unanimously expected in a Reuters poll.. (Reuters)

Australia: Unemployment rate sinks to 5.1% in May . The jobless rate in Australia came in at a seasonally adjusted 5.1% in May, the Australian Bureau of Statistics said - well below expectations for 5.5%, which would have been unchanged from the April reading. The Australian economy added 115,200 jobs last month to 13,125,100, blowing away forecasts for an increase of 30,000 following the loss of 30,600 in the previous month. (RTT)

Hong Kong: Jobless rate declines in May. Hong Kong's unemployment rate declined in May, the labor force statistics from the Census and Statistics Department showed. The unemployment rate fell to a seasonally adjusted 6.0% in three months to May from 6.4% in three months to April. The underemployment rate decreased to 2.8% from 3.3% in the preceding period.. " (RTT)

Markets

Advancecon: Buys 51% of quarry firm Spring Energy. Advancecon Holdings is buying a 51% stake in quarry operator Spring Energy Resources for RM30.4m. Spring Energy undertook upstream activities of open excavation at quarries from which rock materials such as granite and limestone are extracted. (BTimes)

Genetec Technology: Secures new orders worth RM47.9m. Genetec Technology has secured new orders worth approximately RM47.9m from the existing customers who are global players in the segments of electric vehicle and battery (RM42.5m), and hard disk drive, electronics and semiconductor (RM5.4m). (The Edge)

G Capital: To sell solar power to Evergreen Fibreboard for 25 years. G Capital's 70%-owned subsidiary has today signed a 25-year solar power purchase agreement with Evergreen Fibreboard. It would design, construct, install, own, operate and maintain a solar photovoltaic energy generating system with capacity of 7MW. (BTimes)

MyEG: To roll out Philippine Covid-19 vaccination programme. MY EG Services (MyEG) has, through its JV company I-Pay MYEG Philippines Inc, entered into a partnership with SinoPhil Biotech, Inc and Family Vaccine and Specialty Clinics, Inc’s Health Direct Now initiative for the provision of a Covid-19 vaccination programme in the Philippines. (SunBiz)

MSM: To remain listed, not affected by any privatisation intent for FGV. MSM Malaysia Holdings will remain as a listed entity even if the Federal Land Development Authority (FELDA) takes over its 51% parent FGV Holdings. Any privatisation intent of FELDA for FGV will be solely related to FGV. (The Edge)

MQ Technology: Proposes private placement to raise between RM8.8m and RM11m. MQ Technology has proposed a private placement of up to 182.81m new shares, representing not more than 20% of its share capital, to raise up to RM10.97m. The shares will be placed out to independent third-party investors to be identified later. (The Edge)

Apollo Food: Halts another Johor Bahru facility to undertake disinfection. Apollo Food Holdings has announced a temporary manufacturing stoppage for the second time this month to prevent the spread of Covid-19. The affected manufacturing facility which was ordered by the Ministry of Health to close for seven days until June 22 and disinfect its premises. (The Edge)

Euro Holdings: Calls off bonus issue after sharp fall in share price. Euro Holdings has terminated its proposed four-for-one bonus issue, citing the recent market volatility in the share price. It may consider other corporate exercises to enhance stakeholders' value and will make the announcements. (The Edge)

MBSB: Projects 3-4% topline growth for 2021, seeks new revenue streams. Malaysia Building Society (MBSB) is anticipating 3-4% growth in revenue for 2021 driven by fee income and trade financing expansion in the face of the challenging operating environment posed by the Covid-19 pandemic and the ensuing restrictions. (SunBiz)

Market Update

The FBM KLCI might open lower today as the S&P 500 notched a third consecutive session of declines Thursday, kept under pressure by sliding shares of materials and financial companies. Markets opened little changed and then drifted between small gains and losses throughout much of the session. While advances in technology shares helped the Nasdaq Composite end higher, both the S&P 500 and Dow Jones Industrial Average finished with losses. The S&P 500 ended Thursday down 1.84 points, or less than 0.1%, to 4221.86. The Dow Jones Industrial Average declined 210.22 points, or 0.6%, to 33823.45 for its fourth straight session of declines. The Nasdaq Composite rose 121.67 points, or 0.9%, to 14161.35, boosted by gains among technology stocks. In Eurepe, the pan-continental Stoxx Europe 600 slipped 0.1%, snapping a nine-day winning streak, after closing Wednesday at a record. Back home, the FBM KLCI closed 0.47% or 7.46 points lower at 1570.86 as investors remained cautious, pending more clarity of recent domestic political developments.

Meanwhile, the regional bourses were mixed with China’s Shanghai Composite Index closed 0.21% higher at 3,525.6, while Japan’s Nikkei 225 ended 0.93% lower at 29,018.33 and South Korea’s KOSPI closed 0.42% lower at 3,264.96.

Source: PublicInvest Research - 18 Jun 2021